Buhari’s $800m Parting ‘Gift’

President Muhammadu Buhari’s request to the National Assembly to approved an $800 million World Bank is raising concerns among many Nigerians.

The president, on Wednesday, wrote NASS to approve the loan his government said will be used as palliatives for most vulnerable Nigerians when the fuel subsidy is finally faced out.
Buhari’s request was contained in a letter read by Senate President Ahmad Lawan on the floor of the upper legislative chamber yesterday.

The president said: “Please note that the federal executive council approved an additional loan facility to the tune of $800 million to be secured from the World Bank for the National Social Safety Net programme and the need to request your consideration and approval to ensure early implementation. Copy of FEC extract attached.

“The senate may wish to know that the programme is intended to expand coverage of shock responsive safety net support among the poor and vulnerable Nigerians. This will assist them in coping with basic needs.

“You may wish to note that the federal government of Nigeria, under the conditional cash transfer, will transfer the sum of N5,000 per month to 10.2 million poor and low income households for a period of six months, with a multiplier 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.

“The NASSP being a social intervention programme, will stimulate the informal sector, improve nutrition, health, education, and human capital development of beneficiaries’ households.”

The letter to NASS came barely one month after his adminitration said it left the decision to end the multi – billion dollars subsidy regime to the incoming administration of Bola Tinubu, who is billed to be sworn in in few weeks on May 29.

Government figures indicate that over $10 billion was budgeted for petrol subsidy last year.

Zainab Ahmed, the Minister of Finance and Planning while speaking on why the Buhari administration has decided not to end the subsidy during his tenure, said there was the need to consult widely before a final decision can be taken on the issue.

Ahmed made the disclosure not long after the federal government said it has approached the Bretton Wood, United States- based financial institution for the loan, which will be paid to mostly poor Nigerians as shock absorber for the inevitable subsidy removal.

The federal government has estimated that over 60 million Nigerians or 10 million households will benefit from thr largese.

The question now among many Nigerians is why the administration has decided to obtain the loan now barely three weeks to its ouster.

This is even more so considering that the decision to end the subsidy regime has been left to Tinubu’s administration which is expected to come to power in few days.

“If the fuel subsidy removal process has been suspended as announced by the Minister of Finance after the NEC meeting at the end of April, then the government should return the borrowed money because what are we taking the loan for?” Auwal Rafsanjani, Executive Director, the Civil Society Legislative Advocacy Centre, CISLAC queried.

Rafsajani’s view is widely shared by not a few Nigerians who queried the intention of rushing to obtain the loan, when actually for now, based on what the federal government said that the subsidy stays as long as the incoming administration wants it.

The very fear is that the funds could be mismanaged by some officials of the administration who are on their way out of office on May 29.

“I hope this will not be used as a parting gift for some officials of the administration as they plan to exit in a few days. It doesn’t make sense at all that you want to take a whopping $800 million at the very end of your tenure. The sane thing to do is to leave that decision to the incoming administration,” an All Progressives Congress, APC in Lagos who spoke in confidence because of the sensitivity the issue has generated, said.

Not a few Nigerians insist that Buhari is indifference to complaints about the country’s huge debt. Adding $800 million to it, they say, will be an overkill on the economy, and a burden on the next administration.