Nigerian Senate approves $8.4bn, €490m borrowing plan

Nigerian Senate approves $8.4bn, €490m borrowing plan.

ABUJA, Nigeria— The Senate on Thursday approved $8.3 billion and Euro 490million as part of the 2018 – 2020 external borrowing (rolling) plan of the Federal Government.

The fund was approved following the senate’s consideration of the Senate Committee on Local and Foreign Debts’ report that was presented by Committee Chairman, Clifford Ordia.

The loans are provided for under the 2018-2020 external borrowing plan of the federal government.

According to reports, President Muhammadu Buhari early this year wrote to the National Assembly seeking the approval of the plan.

In his letter, President Buhari had also noted that the projects and programmes to be funded by the plan were based on the technical and economic evaluation that will promote employment generation, social protection, and poverty reduction.

“The listed projects form part of the 2018-2020 External Borrowing Plan covered both the Federal and States Governments’ Projects and are geared towards the realization of the Nigerian Economic Sustainability Plan that cut across key sectors such as Infrastructure, Health, Agriculture and Food Security, Energy, Education and Human Capital Development and COVID 19 Response efforts,” the president said.

Projects to be financed with these loans are located in six geo-political zones in the country, which according to the letter will have impacts on the socio-economic development of each region.

The loan, he said, will be raised from multilateral and bilateral tenders as well as the international capital market.

The funding will be done through sovereign loans from the World Bank, African Development Bank (AfDB), Islamic Development Bank, French Development Agency, and the China EXIM Bank.

Others include the China Development Bank, European Investment Bank, European ECA, KfW, IPEX, AFC, India EXIM Bank, and the International Fund for Agricultural Development (IFAD).