Udora Orizu in Abuja
The House of Representatives on Tuesday approved the $16,230,077,718 and €1.020 billion for 20018-2020 external borrowing plan as requested by President Muhammadu Buhari.
The lawmakers, who gave the approval during the consideration of report on the ‘Request for a concurrent approval of donor fund projects under the Federal Government Proposed 2018-2020 External Borrowing (Rolling) Plan No. 2 and Addendum to the request for concurrent approval of Multilateral Fund Projects under the 2018-2021 Federal Government External Borrowing (Rolling) Plan’, also approved the grant component of $125 million.
The Chairman of the Committee on Aids, Loans and Debt Management, Hon. Ahmed Dayyabu Safana, who read the report before his colleagues, said the World Bank, African Development Bank, and the French Development Agency (AFD) are among the funding agencies.
According to him, from a total sum of $16.230 billion, the World Bank is to provide $3,529,300,000; China EXIM Bank – $5,078,441,252; Industrial & Commercial Bank of China – $3,902,267,260; China Development Bank – $2,893,693,930; European ECA/KFW/IPEX/AFC – $190,255,276; Standard Chartered Bank/Sinocure – $62,120,000, while the Africa Development Bank (AFDB) is to provide $698,500,000.
He further explained that from the total sum of €1.020 billion, French Development Agency (AFD) will provide €345,000,000; European Investment Bank – €175,000,000, while International Capital Market will provide €500,000,000.
According to the approved schedule of projects, the Nigeria Electrification Project – Off Grid is to receive $350,000,000 from World Bank and $200 million from AfDB; 330 KV DC North Core Interconnection of Nigeria/Niger-Benin/Togo-Burkina Faso is to gulp $29,300,000 from World Bank; Nigeria Transmission Expansion Project (NTEP-1) is to receive $210 million from Africa Development Bank (AfDB); while Northern Corridor Transmission Project will gulp €245 million from French Development Agency (AFD).
According to the approval granted by the House, from the total external loan approved for the Digital Economy, the National Identity Management Commission project is to receive $100 million from French Development Agency.
From the total sum of $500 million approved for the industrial sector, the federal government is to raise Sovereign Guarantee for the Issuance of Eurobond as collateral to enable the Bank of Industry to fund its projects worth $500 million but not more than €750,000,000 International Capital Market.
For the education sector, the Federal Ministry of Education and Universal Basic Education Commission will receive $200 million from the World Bank for the Innovation Development & Effectiveness in the Acquisition of Skills (IDEAS) Project; $500 million from World Bank for Adolescent Initiative Learning and Empowerment Project (AGILE); and Additional Financing for Better Education Service Delivery for All: Global Partnership for Education (Grant) of $125 million from World Bank.
From a total loan of $12.065 billion proposed for the transportation sector, the Federal Ministry of Transportation is to receive $3,141,984,852 from China EXIM Bank to fund the Nigerian Coastal Railway Project: Lagos-Benin City Segment; $1,711,336,400 from China Exim Bank to fund Nigerian Coastal Railway Project: Benin-Onitsha including Onitsha Railway Bridge (Branch); $2,893,693,930 from China Development Bank to fund Nigerian Coastal Railway Project: Benin City-Warri – Yenagoa -Port Harcourt Segment; $3,902,267,260 from Industrial and Commercial Bank of China to fund Central Line Project: Abuja – Baro – Itakpe – Ajaokuta segment; $25,120,000 FROM China EXIM Bank to fund the Lagos-Ibadan Railway Modernization Project Construction of the Branch Line (Apapa-Tin Can Island Port) and $190,255,276 from European ECA/KWF/IPEX/AFC to fund Kano-Maradi SGR with Branch to Dutse.
Similarly, the sum of $1.789 billion proposed for the Financial and National Planning sector, Nigeria Power Sector Recovery Performance-Based Programme is to gulp $750 million from the World Bank and $288.500 million from the AfDB to fund COVID-19 Response Support Programme (C19RSP).
For the health sector, the Federal Ministry of Health and National Centre for Disease Control (NCDC) project is to receive $225 million from the World Bank for Accelerating Nutrition Results in Nigeria Project (ANRiN); $450 million from the World Bank to finance Multi-Phased Programmatic Approach-Immunization Plus and Malaria Progress by accelerating Coverage and Transforming Service (IMPACT) Project Immunization Plus; $400 million from World Bank to finance Nigeria Covid-19 Preparedness and Response Project (COPREP) – Additional Financing.
The lawmaker however said that the terms and conditions of the loan from the funding agencies should be forwarded to the National Assembly prior to the execution of same for concurrence and proper documentation.
