The Senate has approved President Bola Tinubu’s request for $800 million borrowing from the World Bank.
The president’s request was in a letter read by Godswill Akpabio, Senate President, at the plenary on Thursday.
Tinubu, in the letter, explained that the loan would be used to scale up the national social safety net programme.
Attached with the request was a decision by the Federal Government to transfer the sum of N8,000 monthly to 12 million poor and low-income households for six months.
He said the money would be transferred directly to identified beneficiaries’ accounts.
The President’s letter stated in part: “Please note that the federal executive council led by President Muhammadu Buhari 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, Copy of FEC’s extract attached.
“You may also wish to note that the purpose of the facility is 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 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 per month to 12 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.
“It is expected that the programme, will stimulate economic activities in the informal sector, and improve nutrition, health, education, and human capital development of beneficiaries’ households.
“Given the above, I wish to invite the Senate to kindly grant approval for the additional loan facility of $800 million to be secured from World Bank for the National Social Safety Net Programme.
“While hoping that this submission will receive expeditious consideration by the Senate, please accept the assurances of my highest regards.”
Senate approves request
Before approving the request on Thursday, the Senate went into a closed session at 3. 32pm and came out at 4.41 pm to brainstorm and give the request accelerated passage.
The President’s letter was read during Plenary by the President of the Senate, Senator Godswill Akpabio.
NLC, TUC kick
The Nigeria Labour Congress, NLC, and its counterpart, the Trade Union Congress of Nigeria, TUC, faulted President Tinubu’s plans, saying it runs contrary to the works of the Presidential Technical Committee on the removal of Subsidy.
NLC and TUC argue that it is not only undemocratic but shows that the President is merely setting up the committee as a window dressing for whatever purposes he has set out for himself, stating, “Any palliative payment must be in line with the agreement reached with labour in line with the technical committee meeting.”
Though the President and General Secretary of NLC, Joe Ajaero, and Emma Ugboaja, could not be reached, a senior officer of NLC who spoke on condition of anonymity said, “The issue is whether the President has trust and confidence in the Steering Committee set up or not. If he has a budget already, it means that he already has activities he has planned on his own. If he has that, what is the need of the Committees? The action of the President has actually undermined the credibility of his own Committee
“We believe that it is not only undemocratic but shows that the President is merely setting up the committee as a window dressing for whatever purposes he has set out for himself.
When you also look at what he has planned, to give N8,000 to households for six months which approximates to N48, 000, you ask yourself, can N48,000 address the millions of suffering the government has already inflicted on the poor? Will it make any significant impact in addressing the consequences already being faced by Nigerians? Will the suffering suddenly end after six months?”
On his part, the President of the Trade Union Congress of Nigeria, TUC, Festus Osifo, who also doubles as President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, simply said “Any palliative payment must be in line with the agreement reached with labour in line with the technical committee meeting.”
Corroborating, the President of the Association of Senior Civil Servants of Nigeria, ASCSN, and TUC’s Deputy President, Dr Tommy Okon, said, “As far as I am concerned it is economic waste. What is N8,000 monthly to 12 million Nigerian households with this hyperinflation and socio-economic challenges?
“How did the government or the president determine those who are to benefit from the data deficit in Nigeria? I think the government should stop this ad-hoc and unsustainable programme.
“What form of poverty alleviation policy implementation strategy is this? Is it not proper to allow the Presidential Committee on Removal of oil Subsidy to conclude its assignment and arrive at a collective agreement with organized labour before embarking on any palliative care distributions? What the government is doing could amount to doing exactly what the previous administration did that yielded no positive impact on the economy and the citizens.
NASU’s raises concerns
Similarly, General Secretary of the Non-Academic Staff Union of Educational and Associated Institutions, NASU, Prince Peters Adeyemi, said “Any effort geared towards the alleviation of the present hardship Nigerians are going through as a result of the President removal of subsidy and the harmonization of the exchange rate markets should be supported.
“However we need to know the criteria to be used in determining those that will benefit from the programme. We hope that this will not be another avenue for a few individuals to divert such money to their private pockets.”
