Osinbajo seeks Senate approval for $1.5 billion loan for states’ infrastructure projects

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The Acting President, Yemi Osinbajo, has asked the Senate to approve $1.5 billion loan.

The loan is part of the 2016-2018 External Borrowing Plan of the federal government and is meant for projects in 10 states, the News Agency of Nigeria reports.

Recall that the Acting President had on May 24th, 2017 also wrote the speaker of the house of representatives seeking to include the Development Bank of Nigeria (DBN) and Fund for Agricultural Finance in Nigeria (FAFIN-II) in the 2016-2018 borrowing plan.

In a letter addressed to the Speaker, Yakubu Dogara, Osinbajo said the DBN which is a multi-donor supported bank, was omitted in the 2014-2016 external borrowing plan.

He explained that the donors were ready to release funds to the DBN, following the approval of the National Assembly.

Osinbajo also said FAFIN was being supported with a sum of €9million by the KfW Development Bank of Germany, after it had released €10.5million in 2013 in the first tranche.

The OPEC member, which has Africa’s largest economy, is grappling with its first recession in 25 years which was largely brought on by low oil prices and the impact of attacks on energy facilities in the Niger Delta.

Crude sales makes up two-thirds of government revenues which are then shared among the country’s 36 states.

President Muhammadu Buhari handed over power to Osinbajo when he travelled to Britain on medical leave on May 7 for what his office described as medical tests. Buhari’s wife on Tuesday said he was recuperating quickly from the undisclosed ailment.

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News Agency of Nigeria (NAN) is a news reporting agency owned and run by the Federal Government of Nigeria just like Nigerian Television Authority.[1] On 10 May 1976 the agency was founded and established by Onitsha noble Onuora Nzekwu who was its first official Managing Director and Chief Editor. On 2 October 1978 its operations began.[2][3] NAN provides General News Service to subscribers in three bulletins published daily. The agency’s website www.nan.ng was launched on 8 August 2016, to offer news to the worldwide audience interested in news primarily about Nigeria, Africa’s most populated country. The current Managing Director of NAN is Bayo Onanuga.

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