Federal Government Reveals Why They Are Borrowing N9.61trn, Biggest Loan In Nigerian History
The federal government has explained why it wants to take a $30.54 billion (about N9.61 trillion) loan, which is believed to be the biggest single external loan request by any government in recent history.
President Muhammadu Buhari, who on Tuesday requested the National Assembly’s accelerated approval of the borrowing plan, said it would include a $575 million World Bank loan.
The total loan will fund a number of key projects in the country, he said.
The projects cut across key sectors of the economy, with special emphasis on infrastructure development, agriculture, health, education, water supply, growth and employment generation, poverty reduction through social safety net programmes and governance and financial management reforms.
Mr. Buhari said the proposed programmes would receive about $11.274 billion of the total loan, while special infrastructure projects would take $10.69 billion. Euro bonds will take $4.4 billion and federal budget support, $3.5 billion, he said.
Details of the projects to be executed with the World Bank loan include polio eradication support and routine immunization project ($125 million); community and social development project ($75 million), and Nigerian states health programme investment project ($125 million).
Others include State education programme investment project ($100 million), Nigerian youth employment and social support project ($100 million), and Fadama 11 project ($50 million).