Economy

The Senate Approves $750M Foreign Loan For 10 States

Published

7 years ago

July 27, 2017

The Senate on Thursday approved external loans for 10 states totaling $750m for the financing of various projects across the country.

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

From the African Development Bank, Abia is getting $200m for Rural Access and Mobility Project; and Ebonyi gets $70m for Ebonyi Ring Road Project (to co-financed by Islamic Development Bank); Enugu, Kano, Plateau and Ondo jointly get $200m for the National Water Urban Sector Reform.

The Islamic Development Bank will finance the Integrated Agricultural and Water Resources Development project in Kano with $200m; and the Ebonyi Ring Road Project with $80m (to be co-financed with African Development Bank).

Enugu and Kano states will jointly get $100m from the French Development Agency for the Third National Urban Water Sector Reform Project.

Acting President Yemi Osinbajo had written to the Senate to seek legislative approval for separation of state projects from the 2016-2018 External Borrowing (Rolling) Plan of the Federal Government.

The upper chamber of the National Assembly had referred the request to its Committee on Local and Foreign Debts.

At the plenary on Thursday, the Senate approved the report by the committee which recommended that the request be granted.

The panel called for effective oversight by relevant Senate committees on the implementation of the projects for which the loans were taken.

It said, “The projects are special initiatives of the Federal Government which, if and when fully implemented, will contribute to stimulating the economy, enhance development and create both direct and indirect jobs for Nigerians, particularly youths in the concerned states.”