The Economic Rights Advocates and the Centre for Social Justice, Equity, and Transparency (CESJET) have maintained that the $2.2 billion loan request by President Bola Tinubu is essential for advancing Nigeria’s economic program.
The convener of the civil society group, Emeka Theodore, disclosed this during a press conference on Thursday in Abuja.
The group’s reaction follows President Bola Tinubu’s request for the House of Representatives and Senate to approve the implementation of a new external borrowing of $2.209 billion in the 2024 Appropriation Act.
Borrowing is Essential
According to the group, denying the loan request from Tinubu will have disastrous effects on ongoing programs and projects.
- Theodore stressed that if the necessary funding is not obtained, infrastructure development, healthcare expansion, and educational reforms might all be shelved.
- He said abandoned projects often represent missed opportunities for economic diversification, job growth, and improved living standards, requiring the necessary funding to be completed.
“For example, lowering transportation costs and boosting regional trade depends on the completion of ongoing rail projects. The provision of sufficient funds is critical to the viability of these projects.”
“Therefore, the $2.2 billion loan is essential to securing Nigeria’s future and advancing its economic program, and should not be seen as a luxury, as some misguided thoughts and speculations have led many to believe,” he said.
He highlighted that borrowed funds are crucial to advancing revenue-generating plans and institutional improvements.
“This loan is an additional source to strengthen diverse empowerment and further upgrade many of our sectors to maintain their global reputation among other nations. It is clear that the loan is more than just a financial tool; it is a driving force behind revolutionary changes in several important economic sectors,” he added.
He claimed that the President Tinubu-led administration’s continuous initiatives to increase non-oil earnings and diversify the economy demonstrate the government’s dedication to fiscal restraint and judicious borrowing.
He urged stakeholders to support Tinubu’s external borrowing move and hold the government accountable, ensuring that borrowed money is used prudently.
What You Should Know
Amid this advocacy, the Senate on Thursday approved the new external borrowing plan request of $2.2 billion presented for consideration by President Bola Tinubu.
- The approval followed the adoption of the report from the Senate Committee on Local and Foreign Debts.
- The report was presented by the Chairman of the Committee, Sen. Aliyu Wammako (APC – Sokoto).
- Presenting the committee’s report, Wammako said the presidential request was very necessary for approval.
He said the loan request would be utilized for the execution of ongoing projects and programs in the 2024 Appropriation Act, noting that the projects were critical for national growth and development.
Tinubu had informed lawmakers via letters that the funds would partly finance the budget deficit of N9.179 trillion in the 2024 budget.
