THE Federal Executive Council (FEC) has approved President Goodluck Jonathan’s anticipatory approval of foreign loans amounting to about $403 million for Lagos, Rivers, Ogun and Osun states.
At its regular meeting presided over by Vice President Namadi Sambo, in the absence of the president, who was in Sokoto, the council also approved a $1.2 billion multi-donor credits for the establishment of the proposed Development Bank of Nigeria.
Another $295 million foreign loans were approved for other developmental projects across the country.
At the end of the meeting, various ministers briefed State House correspondents on the outcome.
Minister of State, Finance, Ambassador Bashir Yuguda, said the fact that most of the loans guaranteed by the government were for APC states further confirmed Jonathan’s position that he is the president of all Nigerians.
He said the council approved the approval to obtain $100 million credit from the French Development Agency in support of Lagos Integrated Urban Development Project (Eko-UP).
He gave the repayment period for the loan as 20 years, including seven years moratorium, commitment fee of 0.25 per cent per annum and an appraisal fee of 0.25 per cent.
Yuguda also said the council gave approval for African Development Bank’s credit facility in the sum of $200 million for the proposed Port Harcourt water supply and sanitation project, as well as an African Development Fund’s credit of $5 million to support Urban Water Sector Reform Project.
He said the credit facility would be secured from AfDB with a repayment period of 15 years, five years moratorium, adding that the interest has enhanced variable spread loan with lending spread of 0.60 per cent per annum which translate to 1.56 per cent.
According to Yuguda, the council also approved $33.174 million credit from the French Development Agency in support of the Ogun State Water Supply Project.
This, he said, would be secured from the FDA with a repayment period of 20 years, including seven years moratorium, commitment fee of 0.25 per cent per annum and an appraisal fee of 0.25 per cent.
For Osun State, Yuguda said the council approved an Islamic Development Bank’s loan of $65 million for financing water supply and sanitation project in the state, adding that the loan has a repayment period of 15 years and gestation period of four years.
On the $1.280 billion for the establishment of the proposed Development Bank of Nigeria, the minister said the loans would come from the International Bank for Reconstruction and Development; World Bank; Africa Development Bank; Germany and French Development Agency in the sums of $500 million, $450 million, $200 million and $130 million respectively.
Yuguda explained that the World Bank’s version of the loan, which is $500 million, has a 21 years’ maturity period with five years’ grace period and on 4.25 per cent interest rate.
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