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Senate Grants Approval to Tinubu’s $500 Million Loan Request for BPE

Written by Jerry Alomatu on May 16, 2024

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The Senate has given its approval for a $500 million loan request put forth by President Bola Tinubu, aimed at supporting the Bureau of Public Enterprises (BPE) in implementing an electricity metering program.

This program, funded under the Nigeria Distribution Sector Recovery Program (DISREP) by the World Bank, is intended to enhance the financial and technical performance of electricity distribution companies (DisCos).

The approval came following the Senate Committee on Local and Foreign Debts’ consideration of the 2022–2024 External Borrowing (Rolling) Plan for the BPE. Senator Haruna Manu, the Vice Chairman of the committee, presented the report, affirming the Senate’s consent to the $500 million loan request.

This loan forms part of a larger borrowing initiative sought by President Tinubu, totalling $7.94 billion, which was initially presented to the Senate on November 1, 2023. Additionally, the President sought approval for a €100 million loan.

However, during a special plenary session on December 30, the Senate approved $7.4 billion in borrowing after reviewing the committee’s report.

Senator Manu assured that the terms and conditions of the loan would not compromise Nigeria’s economic growth or sovereignty. He emphasized that the approval process adhered to the Debt Management Office (Establishment) Act 2003 and the Fiscal Responsibility Act 2007, which mandate presidential approval and subsequent National Assembly resolution for external borrowing.

Previously, the committee had deferred consideration of the BPE’s borrowing request due to the agency’s failure to appear before them to defend their proposed project. Following resumed deliberations and interactions, the committee recommended approval of the loan, ensuring compliance with legislative requirements.