FG Eyes $2.5bn World Bank Loan for Renewed Hope Projects - Bagudu

The Minister of Budget and Economic Planning, Senator Atiku Bagudu, has revealed that the Federal Government has requested a $2.5 billion loan from the World Bank to support the Renewed Hope transformational projects. 

Bagudu also stated yesterday that the upcoming 2024 Supplementary Appropriation Bill would be funded in part by the N50 billion Presidential Infrastructure Development Fund (PIDF) held in the National Sovereign Wealth Investment Authority (NSWIA). 

He shared this information during a briefing with the Joint Senate and House of Representatives Committee on National Planning and Economic Affairs regarding the proposed 2024 Supplementary Appropriation Bill.

Bagudu emphasized that the N50 billion in the PIDF would be insufficient to finance the Renewed Hope Transformational Projects hence the government is seeking $2.5 billion loan from the World Bank.

He hinted that the World Bank management would convene soon to make a decision regarding its approval.
President Bola Tinubu recently informed the joint session of the National Assembly that he would soon submit the proposed money bill to the federal lawmakers for their approval.

During a meeting with the Committee members, the Minister emphasized that the forthcoming Supplementary Budget would be allocated to four key transformational projects. 

The key projects include the Lagos-Calabar Coastal Road, the proposed Sokoto – Badagri Road, and the completion of ongoing railway projects for which the Federal Government has not yet provided counterpart funding.

Bagudu also highlighted that the proposed money bill would finance the rehabilitation and expansion of dams and irrigation schemes to support increased production within the economy. 

He further said that the supplementary budget aimed to allocate more funds to support CNG and LNG projects, thus enhancing energy competitiveness.

Bagudu pointed out that a study conducted by the Federal Ministry of Science, Technology and Innovation demonstrated that CNG vehicles are more cost-effective to maintain than petrol-powered vehicles. 

He added that the trans-Sahara highway, inherited by the current administration, would also be funded through the supplementary budget.

He stated: "The announcement of the supplementary budget stemmed from a memo presented by Mr. President to the Federal Executive Council. 

"In this memo, he highlighted the existence of the Presidential Infrastructure Development Fund, which is housed in the National Sovereign Wealth Investment Authority. 

"He also identified transformational projects, including the Lagos – Calabar Coastal Road, proposed Sokoto-Badagri Road, and the completion of ongoing railway projects for which counterpart funding has not been provided. 

"Additionally, we intend to allocate funds for the rehabilitation and expansion of dams and irrigation schemes to support increased production within the economy. Lastly, we plan to allocate additional funds to support CNG and LNG initiatives."

The Minister also mentioned the possibility of considering the Organized Labour's minimum wage agitation in the proposed legislation. 

Regarding the 2024 Budget performance, the Minister explained that some MDAs had not initiated projects due to the Federal Government's decision to take over payment of major contractors. 

He added that there had been a shift from the previous practice of quarterly fund allocation to a bottom-up cash approach, in line with procurement laws.