President Muhammadu Buhari has received the Senate’s approval for his $5.513 billion external loan request, aimed at financing the revised 2020 budget.
Despite the Senate standing down a component of the loan, citing a lack of requisite details for certain projects, the overall loan request was eventually approved following the presentation and consideration of the report of the Senate Committee on Local and Foreign Debts.
The approved lenders for the federal government’s priority projects include: the AfDB, providing $125 million to strengthen the healthcare system and improve response to COVID-19, and $23 million for financing smallholder farmers to mitigate the food security impact of the pandemic. Additionally, $600 million from the Islamic Development Bank will support Nigeria’s response to COVID-19 challenges, and $500 million from the African Export-Import Bank will provide critical medical supplies to combat COVID-19.
However, the Senate has deferred the federal government’s plan to borrow €995 million from the Export-Import Bank of Brazil to support the Green imperative and enhance the mechanisation of agriculture and agro-processing in Nigeria.
Furthermore, the proposal for $500-750 million negotiation with the World Bank for the State Fiscal Transparency and Sustainability Program to provide fiscal support to the states was not approved. Additionally, the ongoing negotiations for $500-750 million with the World Bank for the COVID-19 Action Recovery and Economic Stimulus Program to support state-level efforts to protect livelihoods and stimulate economic activities is also pending approval.