Osinbajo seeks Senate approval for $1.5bn loan

Prof Yemi Osinbajo, Nigeria’s Acting President has asked the Senate to approve a loan of $1.5bn which is part of the 2016-2018 borrowing plan of the federal government for capital projects.

The loan will be used for projects in ten states-  Kaduna, Ogun, Ebonyi, Abia, Katsina, Jigawa, Kano, Enugu, Plateau, and Ondo.

Osinbajo’s request was contained in a letter he sent to the upper and lower house and read on the floor of the Senate by Saraki on Tuesday.

Part of the letter read, “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.”

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“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.”

A breakdown of the loan request shows that Kaduna is seeking $350 million (World Bank), Ogun, $350 million (World Bank), Ebonyi, $70 million (AfDB) and Abia, $100 million (AfDB).

Also, Katsina intends borrowing $110 million (Islamic Development Bank), Jigawa, $32.4 million (Islamic Development Bank), Ebonyi, $80 million (Islamic Development Bank) and Kano, $200 million.

Enugu, Kano, Plateau, and Ondo are together seeking a sum of N200 million from French Development Agency.

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