- Zainab Ahmed, the minister of finance, says the federal government will take another external loan of $247.3m for the development of infrastructure
- The minister says $150m will come from the African Development Bank, which will be spent specifically on rural electrification projects
- The approval was made by the Federal Executive Council on Wednesday, April 17
The minister of finance, Zainab Ahmed, has said that the federal government would take another external loan of $247.3m for the development of infrastructure.
The Punch reports that the Federal Executive Council made the approval at its sitting in Abuja on Wednesday, April 17.
Legit.ng notes that this is despite the fact that Nigeria’s current debt stands at N24.38tn.
According to the minister, $150m would come from the African Development Bank, which would be spent specifically on rural electrification projects; $50m from Africa Grow Together Fund for other electrification projects; and $20m from French Development Agency, which would be loaned to the Lagos state government.
The $20m will be used to build new roads and rehabilitate existing ones.
She said: “Council approved three memos for Ministry of Finance. First, it approved a $150m loan facility from AfDB and $50m loan from African Grow Together Fund to finance the Nigerian electrification project. The project is a nationwide initiative to be implemented by the rural electrification agency.
“The project aligns with the strategy of the Federal Government on electrification of rural communities. The project has four components: First is solar hybrid mini-grid for rural economic development, the second is productive appliances equipment for up-grid communities, and the third is energising education while the fourth component is institutional capacity building.
“The impact of the project when fully implemented, about 500,000 people will be able to have access to electricity for about 105,000 households. The maximum power that will be generated will be 76.5 megawatts installed generating capacity part of which is 68,000 megawatts of solar.
“Eight universities will benefit from this scheme and about 20,000 small, micro, medium enterprises across different communities in the nation.
“The second approval is the North Core Dorsal Regional Transmission Project. This is a project that is part of the pipeline for the West Africa power pool priority projects. The intention is for the creation of a regional power pool in the region of West Africa. The pool project aims to connect Nigeria, Niger, Benin Republic, Togo, and Burkina Faso with a high voltage 330 kilowatts transmission line, to facilitate energy trade among participants.
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“The project is in the total sum of $640m, out of which each of the four countries involved has a component. Nigeria has the smallest component in this pact, which is a total loan of $27.3 m IADE facility, a concessionary loan. This is a loan that the four countries are taking together; the other three countries have concluded theirs. So, this is one of the final stages for Nigeria to conclude its process.”
Meanwhile, Legit.ng previously reported that the International Monetary Fund (IMF) cautioned Nigeria and other developing countries against taking loans from China due to unfavourable loan conditions.
Tobias Adrian said this on Wednesday, April 10, during the launch of the Global Financial Stability Report for April 2019 at the IMF/World Bank meetings in Washington DC, USA.
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