The Senate has approved President Tinubu’s request to borrow $7.8bn and €100 million as part of the 2022-2024 borrowing plan of the Federal Government.

The request was approved after the Senate considered and adopted the report of its committee on Local and Foreign Debt during Saturday’s plenary.

Tinubu had said that the Federal Executive Council under former President Muhammadu Buhari approved the loan facility on May 15, 2023 to finance infrastructure, health, education, agriculture, insecurity and other sectors.

He further explained that the foreign loan had become necessary to bridge the financial gap and return the economic activities of the country to normalcy.

The funds, he said, would be used to develop infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms.

Similarly, the Red Chamber also okayed Tinubu’s request to securitise the Central Bank of Nigeria N7.3tn Ways and Means advances to the Federal Government.

Tinubu had, in a letter read by the Senate President on Saturday, said the securitisation was targeted at reducing debt service cost and extend the repayment period of the existing loans.

The Ways and Means provision allows the government to borrow from the Central Bank in the event that it requires short-term or emergency financing to support delayed government projected cash receipts of fiscal shortfalls.

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