The Senate approved President Bola Tinubu’s proposal for a $800 million loan as an additional resource for the funding of the National Social Safety Net Programme established by the National Assembly on Thursday.
The Senate also modified the Supplementary Budget for 2022.
This was in response to Tinubu’s request for approval. The President’s appeal was contained in a letter he delivered to the upper chamber via the Senate President, Godswill Akpabio, and was read aloud on the Assembly floor during plenary.
Tinubu said that the Federal Executive Council, led by ex-President Muhammadu Buhari, had accepted a $800 million loan facility from the World Bank to fund the Social Safety Net Programme.
The President also stated that the facility’s objective was to enhance coverage of shock responsive safety net supports for all and vulnerable Nigerians in order to pay the expense of their basic needs.
“Request for approval of additional financing of the National Social Safety Net Programme set up by the National Assembly. It is with pleasure that I refer the above matter to you,” the statement partly read.
“Please note that the Federal Executive Council led by President Muhammadu Buhari GCFR had approved an additional loan facility to the tune if USD800 million to be secured from the World Bank to finance the Social Safety Net Programme, copy of the Federal Executive Council is extract is attached here.
“You may also wish to know that the purpose of the facility is to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians and the cost of meeting basic needs.
“You may further wish to note that under the conditional cash transfer window of the programme, the Federal Government of Nigeria will transfer the sum of N8,000 a month to 12 million poor and low-income households for a period of six months with a multiply effect on about 60 million individuals.
“In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.
“It is expected that the programme will stimulate economic activities in the informal sector and improve nutrition, health and education outcomes for beneficial households.
“Giving the above, I wish to invite the Senate to kindly grant approvals for additional loan facilities USD800milliom to be secured from World Bank for the National Social Safety Net Programme.
“While hoping that this submission will receive an expeditious consideration by the Senate. Distinguished Senate President and distinguished members, please accept the assurances of my highest regards.”
After reviewing the letter, the Senate President forwarded it to the Committee of the Whole for further legislative action.
After deliberation, the Committee modified the 2022 Supplementary Budget and approved Tinubu’s request.
