Exclusives

Osinbajo seeks separate approval for $1.492bn States’ foreign loan

by KEHINDE AKINTOLA, Abuja

June 6, 2017 | 4:42 pm
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Acting President Yemi Osinbajo has requested for separate approval of the sum of $1.492 billion External Borrowing (Rolling) plan for 10 States of the Federation.

The proposed $1.492 billion external borrowing (Rolling) Plan for States was part of the $29.6 billion approved 2016-2018 by the Federal Executive Council (FEC).

Sequel to the non-inclusion of the details of the $29.6 billion, members of the House had in November 2016, stepped down the consideration of the request made by President Muhammadu Buhari.

The states are Kaduna, Ogun, Kastina, Ebonyi, Jigawa, Kano, Enugu, Plateau, Ondo, and Abia.

Osinbajo in a letter with Ref. No: SH/AG.PRESIDENT/HOUSE/02/6 dated 25th May, 2017 and addressed to the Speaker Yakubu Dogara, urged the legislature to accelerate the process.

“I write in reference to my earlier letter requesting for the consideration and approval of the House of Representatives for the 2016-2018 External Borrowing (Rolling) Plan and to request the House to separate the States’ projects from the items listed therein with a view to giving them accelerated consideration.

The projects are: World Bank’s Assisted Project loan worth $350 million for Kaduna State Development Policy Operation and $350 million for Ogun State Development Policy Operation.

Others are: African Development Bank’s loan worth $70 million for Ebonyi Ring Road Project (to be co-financed with Islamic Development Bank) and $100 million for Abia Rural Access and Mobility Project (RAMP).

Also included is the French Development Agency loan worth $200 million for Enugu, Kano, Plateau and Ondo states for Third National Urban Water Sector Reform Project (NUWSRP-III).

Islamic Development Bank is to offer $110 million for Katsina Health System Project; $32.4 million for Jigawa Integrated Rural Development Project; $80 million for Ebonyi Ring Road Project (to be co-financed with AfDB) and $200 million for Kano Integrated Agricultural and Water Resources Development project, respectively.

The Acting President further emphaised that the “separation of the states’ projects from the list became imperative in view of the state current economic realities in the country and the pressing needs of these states to provide infrastructural and social amenities for their citizens.

“The total loans for the states being presented for special consideration and approval is $1,492,400,000 as listed in paragraph in 1 above,” the letter read.

He assured that the timely consideration and approval of the External Borrowing (Rolling) Plan will enable the states to meet up with all other effectiveness conditions for the implementation of the projects in their respective states.

KEHINDE AKINTOLA, Abuja


by KEHINDE AKINTOLA, Abuja

June 6, 2017 | 4:42 pm
  |     |     |   Start Conversation

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