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Saturday, 29 October 2016

External Borrowing: Govt to raise $25.46bn from World Bank, IDB, AfDB

Federal Government to borrow  $25.46BN from multilateral and bilateral development agencies between now and 2018.

Other agencies to provide funding are the AFDB, the Japanese international cooperation agency and the China exim bank.

President Muhammadu Buhari had in a letter to the National Assembly on Tuesday sought the approval of the lawmakers for external borrowing of $29.96bn to cover the 2016-2018 rolling plan.

Most of the money will come from multilateral agencies. They are concessional loans. They are also long-term loans and include the requests of some state governments.

“The total cost of the projects and programmes under the borrowing (rolling) plan is $29.96bn, made up of proposed projects and programmes loan of $11.27bn; special national infrastructure projects of $10.69bn; Eurobonds, $4.5bn; and Federal Government budget support facility of $3.5bn.”

According to the President’s letter to the National Assembly, the money will be spent on various projects in critical sectors, including agriculture, health, education, water supply, growth and employment generation, poverty reduction through social safety net programmes, and governance and financial management reforms, among others.

The President explained that the projects would make positive impact on the country’s economic development.

Buhari said borrowing had become unavoidable because the government was grappling with lean financial resources.

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