Again President Buhari Seeks $800 Million World Bank Loan Few Days To Handover
The purpose of the loan is to provide support and alleviate the potential consequences of removing fuel subsidies in Nigeria
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Again President Buhari Seeks $800 Million World Bank Loan Few Days To Handover
President Muhammadu Buhari has made a formal request to the Senate, seeking their approval for an $800 million loan from the World Bank, News Week Nigeria reports.
The purpose of the loan is to provide support and alleviate the potential consequences of removing fuel subsidies in Nigeria. This request follows the government’s earlier announcement of an $800 million grant from the World Bank, intended to assist 50 million vulnerable Nigerians or 10 million households as part of their subsidy palliative measures.
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However, the Civil Society Legislative Advocacy Centre (CISLAC), a non-governmental organization, expressed concerns about the government’s approach to the country’s mounting debt crisis. CISLAC’s Executive Director, Auwal Musa-Rafsanjani, questioned the loan request, particularly the decision to borrow funds for post-subsidy removal palliatives, describing it as unusual.
He emphasized that if the fuel subsidy removal process has been suspended, as announced by the Minister of Finance, then the borrowed money should be returned.
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Rafsanjani highlighted the worries among Nigerians regarding another $800 million loan from the World Bank, considering Nigeria’s revenue collection of N10 trillion in 2022 and a debt of approximately N77 trillion. This raises concerns about the country’s financial stability and the impact of further borrowing.
In related news, the National Economic Council (NEC) recently decided to postpone the planned removal of petroleum product subsidies until the end of President Buhari’s administration.
The NEC, comprising state governors, the Governor of the Central Bank of Nigeria, and other government officials, determined that the current circumstances were not favorable for subsidy removal. The finance minister emphasized the need for continued discussions and preparatory work in collaboration with states and representatives of the incoming administration
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