Buhari Regime Defends Nigeria’s Growing External Loans, Lists Bogus Projects

The Presidency has backed the rising exterior loans below which Nigeria is reeling, saying the loans are to fund initiatives and programmes which Nigerians profit from. 

In an announcement on Saturday, presidential spokesman, Garba Shehu, listed some bogus initiatives and programmes which the loans could be spent on. 

Buhari Regime Defends Nigeria’s Growing External Loans, Lists Bogus Projects 2

The Buhari administration is below fireplace after the President wrote to the Senate to approve $4.054bn and €710million credit score.

The opposition People’s Democratic Party (PDP) warned that the All Progressives Congress (APC) authorities is making an attempt to promote the nation. 

Buhari Regime Defends Nigeria’s Growing External Loans, Lists Bogus Projects 3

The opposition mentioned if the legislature approves the newest request, and a further N5.62trillion mortgage proposed for the 2022 finances, Nigeria’s legal responsibility below Buhari will hit “N40trillion with no clear-cut repayment plan”.

But Shehu defined that 15 initiatives, throughout the six geo-political zones, are to be financed with the anticipated funds from multilateral establishments, below the 2018-2021 medium-term (rolling) exterior borrowing plan.

He mentioned the loans shall be sourced from the World Bank, French Development Agency (AFD), China-Exim Bank, International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chartered/China Export and Credit (SINOSURE).

A breakdown of the ‘‘Addendum to the Proposed Pipeline Projects for the 2018-2021 Medium Term (rolling) External Borrowing Plan,’’ exhibits that the World Bank is anticipated to finance seven initiatives together with the $125million grant for ‘‘Better Education Services for All’’.

“The Global Partnership for Education grant is expected to increase equitable access for out-of-school children and improve literacy in focus states.

“The grant, which will be implemented by the Federal Ministry of Education and the Universal Basic Education Commission (UBEC), will strengthen accountability for results in basic Education in Katsina, Oyo and Adamawa States.

“Other projects to be financed by the World Bank are, the State Fiscal, Transparency, Accountability and Sustainability Programme for Results as well as the Agro-Processing, Productivity, Enhancement and Livelihood Improvement Support Project.

“The benefiting states for the agro-processing project are, Kogi, Kaduna, Kano, Cross River, Enugu and Lagos with the Federal Ministry of Agriculture and Rural Development as the implementing ministry.

“The objective of the project is to enhance agricultural productivity of small and medium-scale farmers and improve value addition along priority value chains in the participating states”, Shehu famous. 

“The loan facility to be provided by European ECA/KfW/IPEX/APC will be spent on the construction of the Standard Gauge Rail (SGR) linking Nigeria with Niger Republic from Kano-Katsina-Daura-Jibiya-Maradi with a branch to Dutse.

“The specific project title, Kano-Maradi SGR with a branch to Dutse, has an implementation period of 30 months and will be implemented by the Federal Ministry of Transport.

“The Chinese African Development Fund through the Bank of China is expected to provide a loan facility of $325 million for the establishment of three power and renewable energy projects including solar cells production facility Phase I & II, electric power transformer production, Plants 1, II, III and high voltage testing laboratory.

“The National Agency for Science and Engineering Infrastructure (NASENI) will implement the project aimed at increasing local capacity and capability in the development of power and renewable energy technologies and infrastructure.

“Credit Suisse will finance major industrialisation projects as well as micro, small and medium enterprises schemes to be executed by the Bank of Industry while SINOSURE and Standard Chartered Bank will provide funds for the provision of 17MW Hybrid Solar Power infrastructure for the National Assembly (NASS) complex.

“The project, with an implementation period of five years, is expected to address ‘‘NASS power supply deficit and reduce the higher overhead burdensome cost of running and maintaining fossil fuel generators (25MW installed capacity) to power the assembly complex”, the assertion from Shehu on Saturday added.

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Buhari Regime Defends Nigeria’s Growing External Loans, Lists Bogus Projects

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