The Tinubu-led Federal Government has opened up on why it decided to obtain a $2.5 Billion loan from the World Bank to fund the 2024 budget.

The Minister of Budget and Economic Planning, Senator Atiku Bagudu, has mentioned that the upcoming 2024 budget will be partially funded by the ₦50 billion Presidential Infrastructure Development Fund (PIDF) managed by the National Sovereign Wealth Investment Authority (NSWIA). 

Nonetheless, the minister highlighted that the ₦50 billion would not suffice to support the “Renewed Hope Transformational Projects”, leading the federal government to request a $2.5bn loan from the World Bank.

Bagudu disclosed this during a briefing with the joint session of the Senate and House of Representatives Committees on National Planning and Economic Affairs regarding the proposed Supplementary Appropriation Bill.

The Minister further mentioned that the World Bank’s management would soon convene to make a decision on the loan’s approval.

Bagudu explained that the entire supplementary budget, still in the process of being formulated, would be directed towards four specific transformational projects.

These projects consist of the Lagos-Calabar Coastal Road, the proposed Sokoto-Badagry Road, the completion of ongoing railway projects lacking counterpart funding from the federal government, and the rehabilitation and expansion of dams and irrigation schemes to enhance agricultural production.

Additionally, Bagudu mentioned that the budget plan would provide increased financial support for projects related to Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) to boost the country’s energy market position.

The head of the Senate’s Budget Committee, Senator Yahaya Abdullahi, observed that making changes to the budget for 2024 could be a more effective approach than creating a new spending bill, considering the significant expenses involved in its preparation.