FG to spend $4.9bn fresh loans on Kano-Niger Republic rail line, others
A standard gauge rail being planned from Kano State in Nigeria to Maradi in Niger Republic is one of the projects the President, Major General Muhammadu Buhari (retd.), plans to fund with the fresh external loans he is asking the National Assembly to approve for his regime.
Buhari had asked the National Assembly to approve fresh external loans of $4.054bn and €710m ($839m) for his regime.
He also sought the legislature’s approval for grant components of $125m in the 2018-2020 external rolling borrowing plans.
These were contained in a letter addressed to both chambers of the National Assembly and read on the floor at the resumption of plenary by the presiding officers Messrs Ahmad Lawan and Femi Gbajabiamila (Senate President and Speaker of House of Representatives respectively) on Tuesday.
Buhari, in the letter, dated August 24, 2021, explained that the projects listed in the 2018-2021 Federal Government Borrowing Plan would be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank International Fund for Agricultural Development, Credit Suisse Group and Standard Chattered/China Export and Credit in the total sum of $4,054,476,863 and €710m (839m) and grant components of $125m.
According to the President, summary of some key projects in each of the six geopolitical zones that will be funded by the loans and a summary on the expected impacts on the socioeconomic development of each of the six geopolitical zones were attached to the letter.
According to the breakdown obtained exclusively by one of our correspondents from the Ministry of Finance, Budget and National Planning, five international bodies will jointly provide the $4,054,476,863 component of the loan.