Osinbajo Seeks $1.5 Billion Loans For Ten States

Ten States out of the 36 States of the Federation are to benefit from the $1.5 billion loans, presently being requested for approval of the National Assembly by the Acting President, Prof. Yemi Osinbajo.

This is even as the nation’s debt profile has hit N19.16 trillion after the country incurred a N7.1 trillion in the last two years

The African Development Bank and the Islamic Development Bank are the multilateral agencies financing the loans.

The Acting President in a letter to both Senate President, Bukola Saraki and Speaker, Yakubu Dogara, he said: “I write in reference to my earlier letter requesting for the consideration and approval of the Senate (and House of Representatives) for the 2016-2018 External Borrowing Rolling Plan and to request the Senate (and the House) to separate the States’ Projects from the items listed therein with a view to giving them accelerated consideration.”

He further said in the letter, dated June 1, 2017, read in both chambers of the National Assembly on Tuesday, that: “It will be highly appreciated if could kindly give this request an expedited consideration and approval to enable states meet up with all other effectiveness conditions for the implementation of the projects in their respective states.”

The list of the states, the various amounts due to them and the respective purposes are as follows:

Ogun state – $350 million

The state wants to access $350 for state Development Policy Operation (DPO) from the World Bank.

Kaduna state – $350 million

Like Ogun state, Kaduna state wants to access $350 for state Development Policy Operation (DPO) from the World Bank.

Ebonyi state – $70 million

For Ebonyi Ring Road Project. The credit facility will be co-financed by the African Development Bank and the Islamic Development Bank

Abia state – $100 million

$100 million will be used for Abia Rural Access and Mobility Project. The credit facility will be co-financed by the African Development Bank and the Islamic Development Bank.

Katsina state – $110 million

Katsina, Health System Project, $110 million

Jigawa state – $32.4 million

Kano state – $200 million.

$200 million is expected to be used for integrated agricultural and water resources development.

Plateau, Enugu, Kano and Ondo states – $200 million

The money is for the states respective third National Urban Water Sector Reform Project (NUWSRP-III) and it will be accessed from the French Development Agency.

Osinbajo further explained that the ten states’ loans which amounted to $1,492,400,000, in the values of $1.28bn (USD) and 9million Euro, was omitted in the 2014-2016 external borrowing plan approved by the National Assembly.