Officials approve Buhari’s $ 5.8 billion loan request

The House of Representatives approved President Muhammadu Buhari’s request for a $ 5.8 billion loan and a $ 10 million grant.

Mr. Buhari had in May, in a letter to the two chambers of the National Assembly, request borrow a maximum of $ 6.1 billion 2018-2020 external borrowing plan (rolling) to finance the 2021 budget deficit.

The Green Chamber approved the request following consideration of the House Committee’s report on AIDS, Loans and Debt Management by the Supply Committee on Tuesday.

The Chairman of the Committee on AIDS, Loans and Debt Management, Ahmed Safana, presented the report on the loan request.

Distribution of loans

The House approved $ 2.3 billion for the Presidential Power Initiative (PPI) grid modernization and expansion program. The loan is to be provided by the German consortium.

The World Bank and the Islamic Development Bank are to finance malaria-related projects to the tune of 200 million naira and 90 million naira respectively. The World Bank to fund the Immunization Plus and Advances Malaria phased program approach by accelerating and transforming service projects with $ 200 million.

To finance the first phase of the Gurara project, the China Exim Bank will provide $ 786.38 million, while the World Bank will provide $ 700 million to finance the Nigeria Sustainable Water Supply, Sanitation and Hygiene (WASH) project.

The Chinese Africa Development Fund (CAP), through the Bank of China, will finance three electricity and renewable energy projects with $ 276.9 million. The projects are; Phase I and II solar cell production facility, production plant for electrical transformers I, II and III and high voltage testing laboratory. All these projects are domiciled at the National Agency for Scientific and Technical Infrastructures (NASENI).

In addition, the World Bank will finance four Agro projects with $ 1.486 billion. The projects are as follows: The Agri-Food Productivity Improvement and Livelihood Improvement Assistance Project will consume $ 200 million, the Agro-Climate Resilience in the Drylands Landscape Project will be funded to the tune of $ 700 million, the livestock productivity and resilience support project $ 500 million and the value chain development program $ 50 million.

READ ALSO: The Senate approves Buhari’s loan request of 16.2 billion euros and 1 million euros

The Chamber resolved that the terms and conditions of the loan from the funding bodies be transmitted to the National Assembly before the execution of the projects.

2018-2021 borrowing plan …

The 2018-2020 (rolling) external borrowing plan contained an approval request for $ 36.8 billion, € 910 million and a grant component of $ 10 million.

The request for approval was in pieces. In July, the Senate approved $ 8.3 billion and € 490 million as a bundle and $ 6.1 billion separately.

The current administration is under critical for his borrowing frenzy.

According to the Debt Management Bureau, the Buhari administration inherited 12 trillion naira although the total stock of debt hovers around 40 trillion naira.

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