Senate Approves Tinubu’s $800m Request For Social Safety Nets, amends 2022 Supplementary Budget

The Senate, on Thursday, approved President Bola Tinubu’s request for the sum of $800 million loan as additional fund for the financing of the National Social Safety Net Programme set up by the National Assembly.

The upper legislative chamber also amended the 2022 Supplementary Budget.

This followed President Tinubu’s request contained in a letter he forwarded to the lawmakers through the President of the Senate, Godswill Akpabio, which was read on the floor of the Assembly during plenary.

The President noted that the purpose of the facility was to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians to meet the cost of their basic needs.

The new borrowing according to the president will be sourced from the World Bank.

He assured that the federal government will 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 letter reads, “Please note that the Federal Executive Council led by President Muhammadu Buhari GCFR had approved an additional loan facility to the tune if USD800 million to be secured from the World Bank to finance the Social Safety Net Programme, copy of the Federal Executive Council is extract is attached here.

“You may also wish to know that the purpose of the facility is to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians and the cost of meeting 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 a month to 12 million poor and low income households for a period of six months with a multiply 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 and education outcomes for beneficial households.

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“Giving the above, I wish to invite the Senate to kindly grant approvals for additional loan facilities USD800milliom to be secured from World Bank for the National Social Safety Net Programme.

“While hoping that this submission will receive an expeditious consideration by the Senate. Distinguished Senate President and distinguished members, please accept the assurances of my highest regards.”

After reading the letter, the President of the Senate referred the letter to Committee of a Whole for further legislative action.

The Committee, upon deliberation, amended the 2022 Supplementary Budget and approved President Tinubu’s request.