$800m World Bank facility NOT loan to Nigeria, Senate clarifies
Senate clarifies World Bank facility as non-loan assistance to vulnerable Nigerians
Nigerian senators with Senate President Godswill Akpabio (left) [Tope Brown]
The Nigerian Senate has issued a clarification regarding the $800 million World Bank facility, stating that it is not a loan but an assistance package from the multilateral institution.
The facility is aimed at providing support to vulnerable Nigerians who are facing difficulties due to the challenges arising from the petrol subsidy removal. The government’s statement comes amidst criticism from human rights lawyer, Femi Falana, who labeled the decision by the National Assembly to allocate ₦110 billion for themselves in the 2023 Supplementary Appropriation Bill as “callous and insensitive.”
The United Action Front of Civil Society also expressed concerns about the approved ₦8,000 monthly payment for vulnerable Nigerians. In response to these concerns, Senator Yemi Adaramodu, the Chairman of the Senate Committee on Media and Public Affairs, held a press briefing in Abuja to shed light on the matter.
Adaramodu emphasised that the $800 million World Bank facility was distinct from the ₦500 billion set aside by the federal government to provide palliatives for Nigerians in response to the fuel subsidy removal.
He clarified that the Senate had meticulously examined the data for disbursing ₦8,000 to 12 million impoverished families for a period of six months before granting approval to access the World Bank facility.
“It is not borrowing, it is for the national social safety net. It is very different from the palliatives targeted specifically at Nigerians which would be sourced among Nigerians. It is not borrowing, it is not a loan,” stated Adaramodu.
He further clarified that the ₦500 billion palliative fund was intended to cushion the impact of the fuel subsidy removal on ordinary Nigerians. He acknowledged that while the sum might not be enough, the government was engaged in talks with organised labor to address the issue comprehensively.
The United Action Front of Civil Society, however, expressed dissatisfaction with the proposed ₦8,000 monthly handout, deeming it inadequate to alleviate the hardships caused by the fuel price hike. The group criticised the allocation of ₦110 billion to the National Assembly members and argued that the meager palliative would not effectively address the deepening poverty in the country.
Falana, in his statement, argued that the National Assembly’s decision to award ₦228.7 million to each newly elected legislator and earmark ₦40 billion for the purchase of SUVs and bulletproof cars for officials was a blatant breach of Section 70 of the constitution. He insisted that such allowances required approval from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
He cited court judgments that called for a review of salaries and allowances for members of the National Assembly to reflect the country’s economic realities. Falana urged the National Assembly leaders to reverse the controversial palliatives and vehicle purchases or face contempt proceedings.
In conclusion, the Senate’s clarification aims to assure the public that the World Bank facility is not a loan but a targeted assistance program for vulnerable Nigerians. Despite the criticism and concerns expressed by civil society groups and Falana, the government maintains that its actions are aimed at supporting those most affected by the fuel subsidy removal.
Pulse.ng
