Within Four Months, Tinubu Borrows Over N1.5trn From World Bank – DMO
..The loans are for education, $700 million
…power, $750 million,
…… women empowerment, $500 million
By Aremu Sosanya
The Minister of Finance and Coordinating Minister for the Economy, Chief Wale Edun, while speaking with newsmen at the end of the inaugural Federal Executive Council meeting in Abuja, said the Federal Government has no intention to borrow from any local or foreign organisation with its removal of subsidy on petrol and exchange rate harmonisation.
He said that the benefit of the subsidy removal would be ploughed back into various sectors aimed at boosting government revenue and improving the business environment for local and foreign investment.
But statistics released by Debt Management Office (DMO shows that the government may not be truthful with the promised as despite growing worries from Nigerians and international organisations about the country‘s mounting debt, Nigeria has so far acquired a total of $1.95 billion in loans from the World Bank in the first four months of President Bola Tinubu’s administration.
The data released by the Debt Management Office (DMO), showed that Nigeria’s total public debt had increased to N87.37 trillion at the end of June 2023. As of June 2022, Nigeria’s public debt stood at N42.84 trillion, a growth of 103.93% year over year.
It is gathered according to the DMO reports that since Tinubu assumed office on May 29, 2023, the World Bank has approved three loans, totalling $1.95 billion.
The loans are for education ($700 million), power ($750 million), and women empowerment ($500 million),
Power project loan ($750m) Details revealed that on June 19, the federal government secured a $750 million loan from the World Bank to facilitate power projects across the nation.
The loan, with project ID P174622, was approved on June 9, 2023, making it the first World Bank loan approved under Tinubu’s administration.
The global lender said the fresh loan would be additional financing for the power sector recovery performance-based operation.
The World Bank document further disclosed that the new financing would run from 2023 to June 30, 2027.
Part of the document reads to justify the loan: “Lack of access to the electricity grid affects 45 per cent of the population (90 million people), making Nigeria the country with the largest number of people not connected to electricity, as such, Nigeria accounts for 12 per cent of the global access deficit.”
On June 27, 2023, the World Bank Group announced the approval of a loan of $500 million for women empowerment programmes.
This is the second loan approved under President Tinubu. World Bank statement announcing the loan reads: “The World Bank has approved $500m for Nigeria for Women Program Scale Up, the scale-up financing will further support the government of Nigeria to invest in improving the livelihoods of women in Nigeria”
The most recent loan is $700 million, approved in September 2023, to bolster educational opportunities and empowerment for adolescent girls in Nigeria.
The new loan is to provide additional funds for an ongoing project known as the Adolescent Girls Initiative for Learning and Empowerment(AGILE) Announcing the loan World Bank also said: “The World Bank approved additional financing of $700 million for Nigeria to scale up the Adolescent Girls Initiative for Learning and Empowerment program whose goal is to improve secondary education opportunities among girls in targeted states.”
