Federal govt to obtain $124.2million loans for water projects

Federal govt to obtain $124.2million loans for water projects

- Nigeria's borrowing spree appears to be going on unabated by the federal government

- Another $124.2million loans for water projects are being sought after by the government

- The outrage over the loans seem not to have deterred the federal authorities

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The Federal Executive Council has given approval for the collection of $104.2million and $20million loans from two international financial institutions for the development of water projects in Nigeria.

According to the Federal Ministry of Water Resources, the loans would come from the African Development Bank and the African Growing Together Fund.

A spokesperson for the ministry, Kenechukwu Offie, disclosed this in a statement issued on Thursday, November 5.

She said the loans would be deployed to the projects to ensure sustainable water supply.

Federal govt to obtain $124.2million loans for water projects

President Buhari's government has been consistently criticised for its penchant for taking loans. Photo credit: @MBuhari
Source: Twitter

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Part of the statement read:

“The Federal Executive Council at its meeting of November 4, 2020, approved to obtain loans of $104.2m from African Development Bank and $20m from African Growing Together Fund to finance Nigerian Urban Water Reform and Akure Water and Sanitation Project.
“The project aims to provide sustainable access to safe drinking water for the residents of Akure city and its environs.”

In a related development, the federal government is seeking the National Assembly’s approval to access $1.2 billion agricultural loans from Brazil.

This was disclosed by the minister of finance, budget, and national planning, Mrs Zainab Ahmed, when she appeared to defend the ministry’s 2021 budget before the House of Representatives’ committee on finance on Tuesday, November 3.

According to her, the federal government had forwarded the loan request to the National Assembly which is aimed at addressing issues in the agriculture value chain as Nigeria moves to make it another source of revenue.

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She said the government was planning to acquire 100,000 hectares of land in each of the 36 states for food production.

Meanwhile, the minister has revealed that the total public debts of Nigeria would hit N38trillion by December 2021.

The minister disclosed this on Tuesday, November 3 in her presentation to the Senate committee on local and foreign debts.

According to her, the total public debt stock comprising the external and home debts of the federal and state governments and the Federal Capital Territory stood at N31.01trn (USD85.90 billion) as of June 30, 2020.

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