President Muhammadu Buhari has submitted a letter to the Senate, seeking their approval for an $800 million loan from the World Bank. The purpose of this loan is to mitigate the impacts of subsidy removal.
This request comes after the Nigerian government's announcement in April regarding an $800 million grant from the World Bank. The grant is aimed at assisting 50 million vulnerable Nigerians or 10 million households as part of the subsidy palliative measures.
Zainab Ahmed, the Minister of Finance, Budget, and National Planning, stated that the grant's disbursement is closely linked to the planned removal of subsidies in June 2023. She emphasized that discussions are ongoing with the newly established Presidential Transition Council (PTC) and the incoming administration to effectively implement the palliative program, which includes considering various factors such as the provision of buses.
In response to the World Bank loan request, the Civil Society Legislative Advocacy Centre (CISLAC), a non-governmental organization, expressed concerns about what they perceive as the Buhari administration's lackadaisical approach to the country's growing debt crisis.
Auwal Musa-Rafsanjani, the Executive Director of CISLAC, questioned the Federal Government regarding the loan request and found it peculiar to borrow funds specifically for post-fuel subsidy removal palliatives. He also pointed out that if the fuel subsidy removal process has been suspended, as announced by the Minister of Finance after the NEC meeting in April, the government should return the borrowed money. He further highlighted that the possibility of Nigeria acquiring another $800 million loan from the World Bank is causing worry among Nigerians, especially considering that the country's revenue collection in 2022 amounted to N10 trillion, with a debt of about N77 trillion.