Osinbajo seeks NASS approval for $1.5 bn loan for 10 states

Acting President Yemi Osinbajo has written the House of Representatives seeking approval for the Federal Government to obtain a $1.5 billion external loan for 10 states.

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

Osinbajo in the letter dated May 25, 2017 which was read during plenary by Speaker Yakubu Dogara, said that the $1.5 billion foreign loan is part of the 2016-2018 external borrowing plan of the Federal Government.

He said the approval of the loan by the National Assembly would help states meet up with the execution of their various projects.

According to the acting president’s letter, the loans are to be sourced from the World Bank, African Development Bank, French Development Agency and the Islamic Development Bank.

A breakdown of the loan request shows that Kaduna is seeking $350 million from the World Bank: Ogun is seeking $350 million from the World Bank; Ebonyi is seeking $70 million from the AfDB while Abia is seeking $100 million also from the AfDB.

Also, Katsina is seeking $110 million from the Islamic Development Bank; Jigawa is seeking $32.4 million from the same Islamic Development Bank, just as Ebonyi is seeking $80 million from the same financial institution while Kano is seeking $200 million.

Enugu, Kano, Plateau and Ondo states are jointly seeking N200 million from the French Development Agency.

Osinbajo added in his letter to the lawmakers that “you may wish to know that the request for the separation of the state’s 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 US$ 1,492,400,000.00 as listed in paragraph in 1 above.