President Bola Tinubu has asked the senate to approve a borrowing request of $800 million.
The president’s request was in a letter read by Godswill Akpabio, senate president, during plenary on Thursday.
Tinubu, in the letter, explained that the loan will be used to scale up the national social safety net programme.
He said the new borrowing 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.
“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,” the letter reads.
“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.”