President Bola Ahmed Tinubu is seeking to borrow $300 million from the Wolrd Bank, if approved, will spiral the loan obtained by his administration to over $7 billion.
The president came to office in May 2023, and records showed that the loan borrowed by his administration currently stands at over $6.9 billion.
In its latest quest to borrow from the Breton Wood, United States of America, USA, based financial institution, the administration said it needed the loan to strengthen Nigeria’s health security infrastructure.
According to World Bank documents, the Nigeria Centre for Disease Control (NCDC) will implement the project, with the Federal Ministry of Finance acting as the borrower.
The initiative aims to enhance Nigeria’s capacity to prevent, detect, and respond to health emergencies.
The project is currently in the pipeline stage, with a disclosure date set for February 6, 2025
The World Bank Board is expected to approve the loan on July 30, 2025, after necessary appraisals and assessments. Implementation will commence in the 2026 fiscal year.
On his ascension to the Nigerian Presidency in 2023 Tinubu had promised not to depend on borrowing to fund government projects, saying efforts will be made by his administration to collect more taxes to raise funds for the government.
Tinubu: “The consequences of the ongoing failure of our tax regime are real and significant. The inability of the government to efficiently raise revenue has led directly to an over-reliance on borrowing to finance public spending.
“A government that cannot properly fund itself will also lack the flexibility or fiscal scope to sensibly manage the economy or respond to external shocks.
“Instead, debt service begins to consume an ever greater portion of the government’s already meagre revenues.
“This traps the economy in a vicious cycle of borrowing simply to service previous debt and leaves almost no scope for socio-economic development.
“As President, I am determined to end this cycle. On the day of my inauguration, I promised that my administration would address all of the issues impeding investment and economic growth in Nigeria.
‘’This promise is why I saw an end to fuel subsidy. It is the reason the Central Bank has called an end to its multiple exchange rate system under my watch.
“It is for the same reason we gather here today (yesterday) to inaugurate the Presidential Committee on Fiscal Policy and Tax Reforms.”
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