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The Senate on Thursday approved the $800 million World Bank loan request by President Bola Tinubu to cushion the effect of economic hardship caused by the removal of fuel subsidy.
The upper legislative chamber approved Tinubu’s request on Thursday after Opeyemi Bamidele, senate leader, moved a motion to that effect.
In the request which was read on the floor of the senate chamber earlier, Tinubu said the loan would be used to scale up the national social safety net programme and cushion the effect of the removal of petrol subsidy.
Tinubu said the federal government will transfer N8,000 monthly to 12 million poor and low-income households for six months.
The loan will be sourced from the World Bank.
Toward the end of his administration, former President Muhammadu Buhari asked the national assembly to approve the sum for the same purpose.
However, the national assembly under the chairmanship of Ahmad Lawan did not have time to approve the request.
“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,” Tinubu’s letter to the national assembly reads in part.
“In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.”
The national social safety net programme was put in place by the Buhari administration after it scrapped a similar programme of former President Goodluck Jonathan known as the subsidy reinvestment and empowerment programme (SURE-P).