Nigeria’s Acting President, Prof. Yemi Osinbajo on Tuesday asked for the approval of the Senate for $1.492 billion loan to finance capital projects in 10 states.
In a letter dated 25th May, Osinbajo said that request for the loan became imperative because of the current economic realities in Nigeria and the urgent need of the some states to provide infrastructure development and social amenities.
Osinbajo noted in the letter that Kaduna state Development policy operation which will be funded by World Bank assisted project demands for $350 million, Ogun State Development Policy operation -$350 milliom, Ebonyi Ring road Project- $70 million , the donor agency for the project in Ebonyi and Abia is African Development Bank, to be co-finance by Islamic Development Bank), Rural Acess and Mobility Project( RAMP) in Abia state to gulp $100 million.
Furthermore, Islamic Development Bank will embark on Health System Project in Katsina with $110 million, integrated Rural Development Project with $32.4 million, Ring Road Project (to be Co-financed with AFDB) with $80 million, integrated agricultural and Water Resources Development (Kano) to gulp $200 million and Enugu, Kano Plateau and Ondo will take $200 million loan from Third National Urban Water Sector Reform Project (NUWSRP-111).
Osinbajo’s letter reads in part,” I write in reference to my earlier letter requesting for the consideration and approval of the Senate for the 2016-2018 External borrowing Plan and to request Senate to separate the states’ projects from the items listed in the borrowing plan with a view ti giving them accelerated considerations.
“The senate may wish to know that the request for the separation of the states projects from the list became imperative in view of the current economic realities in the country and the pressing needs of these states to provide infrastructure and social amenities for their citizens. The total loan for the states being presented for special consideration and approval is $1.492 billion.”
