The Nigerian Senate has approved the $500 million World Bank loan request by President Bola Tinubu.

Naija News reports the loan is for the production of electricity meters for the citizens.

The Bureau of Public Enterprises (BPE) was granted the funds following a thorough review of the report by the Committee on local and foreign debts, which was presented by Senator Haruna Manu, who serves as the Vice Chairman of the Committee.

On November 1, 2023, President Bola Tinubu requested Senate approval for a $7.94 billion World Bank loan package, which included a $500 million loan.

The Federal Government will receive fresh loan funding from the World Bank, with approval expected for loans totalling $2.25bn on June 13, 2024.

Naija News recalls that the Minister of Finance, Wale Edun, at the spring meetings of the International Monetary Fund and the World Bank last month, had announced that the nation had qualified for processing a loan, described as ‘virtually a grant’ of $2.25bn from the World Bank at one per cent interest rate.

He stated, “We have qualified for the processing just this week to the Board of Directors of the World Bank of a total package of $2.25bn of what you can call ‘the closest you can get to a free lunch’- virtually a grant. It’s for about 10- 20 years moratorium and about one per cent interest.”

The package, approved by the World Bank Board of Directors, offers a 40-year term with a 10-year moratorium and a nominal one-percent interest rate.

According to the latest information on the World Bank website, the funding will be received via two major development projects.

The first project is the Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing, which is set to receive $1.5bn.

The second project, NG Accelerating Resource Mobilization Reforms Programme-for-Results, has proposed funding of $750m.