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Senate Approves $1.806b Chinese Loan for Rail Projects

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  • Senate Approves $1.806b Chinese Loan for Rail Projects

The Senate yesterday approved part of the 2016-2018 External Borrowing Plan pertaining to the Lagos, Kano railway modernisation project (Lagos-Ibadan segment double track).

The upper chamber also endorsed the World Bank-supported reconstruction and rehabilitation of the Northeast at $1.806 billion.

This followed the consideration of the report of the Senate Committee on Local and Foreign Debts on the proposed Federal Government 2016-2018 External Borrowing (Rolling) Plan presented by the Chairman of the Committee, Senator Shehu Sani.

Sani, in his report, noted that the committee resolved to consider the project due to its importance and urgency to fast track the development of critical infrastructure.

The committee received briefs from Ministers of Transportation and Finance, Director General of the Debt Management Office (DMO), Chairman, Fiscal Responsibility Commission and Managing Director, Nigeria Railway Corporation.

The projects to be financed by the China Exim Bank include Lagos-Kano Railway Modernisation (Lagos-Ibadan segment); Lagos-Kano Railway modernisation project (Kano-Kaduna segment) and Coastal Railway (Lagos-Calabar segment).

On the World Bank-supported projects, Sani listed polio eradication and routine immunisation, Community and Social Development project and Nigeria States Health programme investment.

Apart from approving the loan request, the committee’s recommendations adopted by the Senate included that the: immediate negotiation for the Eastern corridor (Port Harcourt-Maiduguri) and same submitted for approval by the National Assembly; and that the committee “do recommend for approval by the Senate the remaining segments of the Rail modernisation project as soon as these are approved by the Board of China-Exim Bank, namely (Lagos-Calabar segment) and the Port Harcourt Maiduguri line (the Eastern corridor rail project)”.

The committee also recommended that the Senate “do emphasize effective oversight by relevant committees on the implementation of all the projects for which the loans is being approved.”

It said that the projects, when fully implemented were sure to stimulate economic development and create both direct and indirect jobs for Nigerians, particularly youth.

On the World Bank supported loan, the committee said that the projects, which are mainly proposed for the Northeast region, will facilitate the much needed rehabilitation of the people and allow schools to be reopened.

The Senate also approved a $750 million Islamic Bank loan request by some states. These are: Enugu, Ebonyi, Kano, and Ondo states.

Ebonyi’s $80 million loan request was earlier rejected but following strident pleadings by Senator Obinna Ogba (Ebonyi Central) the upper chamber made a U-turn to approve the request.

The Senate also approved the $750 million medium term external loan requests for six states, out of the Federal Government’s request of $1.49billion for 10 states.

The states whose loan requests were approved are Abia, Ebonyi, Enugu, Kano, Ondo and Plateau.

The committee said there was a need for phased approval of the loan requests for the other states which are: Ogun, Jigawa, Kaduna and Katsina.

A breakdown of the approved loans are $70 million from African Development Bank (ADB) for Ebonyi Ring Road Project (to be co-financed by Islamic Development Bank), $200 million ADB facility for Rural Access and Mobility Project (RAMP) in Abia State, and $200 million IDB loan for Kano State Integrated Agricultural and Water Resources Development.

It also approved a $100 million request for Enugu and Kano from the French Development Agency for the third National Urban Water Sector Reform (NUWSRP-III).

“That the remaining four states in the borrowing plan be deferred,” the report read.

The railway project, which includes the Lagos-Ibadan segment double track is to be funded by China Export-Import Bank for $1.231 billion, while the Northeast rehabilitation is to be funded by the World Bank for $575 million.

The terms of the China EXIM bank loan include a maturity enure of 20 years with a moratorium of seven years at interest rate of 2.5 per cent. It also includes a management fee of 0.5 per cent, a commitment fee of 0.2 per cent, and a duration of three years.

The committee in its report observed that the railway project would link the North to the South by rail and promote trade, create jobs and also reduce pressure in roads infrastructure.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Government

Senate Suspends Senator Abdul Ningi for 3 Months Over Budget Padding Allegations

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Abdul-Ahmed-Ningi

The Senate has announced the suspension of Senator Abdul Ningi for three months following his allegations of budget padding to the tune of N3.7 trillion in the 2024 budget.

Ningi, who represents Bauchi Central and chairs the Senate Committee on Population, had made the claims in a recent interview with the Hausa service of the BBC.

During a plenary session, Senator Olamilekan Adeola, the Chairman of the Senate Committee on Appropriations, raised a motion to address Ningi’s allegations, citing the urgent need to address what he termed as “false allegations.”

The transcript of Ningi’s interview was read on the Senate floor, prompting deliberation on the appropriate action to take.

Initially, Senator Jimoh Ibrahim proposed a 12-month suspension for Ningi, but Senator Chris Ekpeyong moved to reduce it to six months.

Eventually, Senator Garba Maidoki amended the motion further, suggesting a three-month suspension.

The amended motion was put to a voice vote, and Senate President Godswill Akpabio announced the decision to suspend Ningi for three months.

Following the ruling, Ningi was escorted out of the Senate chamber by the Sergeants-at-arms.

The suspension comes amidst division within the Senate over Ningi’s claims, with some senators disowning his allegations and calling for a thorough investigation.

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Ekiti Governor Unveils Multi-Billion Naira Relief Programmes Amid Economic Crisis

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Biodun Oyebanji

Ekiti State Governor, Mr. Biodun Abayomi Oyebanji, has announced a comprehensive relief package aimed at alleviating the hardship faced by the people of the state.

The relief programs encompass various sectors to cushion the impact of the economic downturn.

One of the key initiatives entails clearing salary arrears amounting to over N2.7 billion owed to both State and Local Government workers.

This move signifies the government’s commitment to addressing the financial burdens faced by its workforce.

Furthermore, Governor Oyebanji has approved a substantial increase of N600 million per month in the subvention of autonomous institutions, including the Judiciary and tertiary institutions.

This augmentation is intended to enable these institutions to implement wage awards in alignment with State and Local Government workers’ salaries.

In addition to addressing salary arrears, the relief programs extend to pensioners, with the approval of payments totaling N1.5 billion for two months’ pension arrears.

Moreover, an increase in the monthly gratuity payment to state pensioners and local government pensioners will provide additional financial support, totaling N200 million monthly.

The relief initiatives also encompass agricultural and small-scale business sectors.

The allocation of funds for food production and livestock transformation projects underscores the government’s commitment to enhancing food security and economic sustainability at the grassroots level.

Governor Oyebanji emphasized that these relief programs are part of the state’s concerted efforts to mitigate the adverse effects of the economic downturn and foster shared prosperity.

The comprehensive nature of the initiatives reflects a proactive approach towards addressing the challenges faced by Ekiti State residents.

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President Tinubu Orders Immediate Settlement of N342m Electricity Bill for Presidential Villa

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President Bola Tinubu has directed the prompt settlement of a N342 million outstanding electricity bill owed by the Presidential Villa to the Abuja Electricity Distribution Company (AEDC).

This move comes in response to the reconciliation of accounts between the State House Management and the AEDC.

The AEDC had earlier threatened to disconnect electricity services to the Presidential Villa and 86 Federal Government Ministries, Departments, and Agencies (MDAs) over a total outstanding debt of N47.20 billion as of December 2023.

Contrary to the initial claim by the AEDC that the State House owed N923 million in electricity bills, the Presidency clarified that the actual outstanding amount is N342.35 million.

This discrepancy underscores the importance of accurate accounting and reconciliation between entities.

In a statement signed by President Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, the Presidency affirmed the commitment to settle the debt promptly.

Chief of Staff Femi Gbajabiamila assured that the debt would be paid to the AEDC before the end of the week.

The directive from the Presidency extends beyond the State House, as Gbajabiamila urged other MDAs to reconcile their accounts with the AEDC and settle their outstanding electricity bills.

The AEDC, on its part, issued a 10-day notice to the affected government agencies to settle their debts or face disconnection.

This development highlights the importance of financial accountability and responsible management of public utilities.

It also underscores the necessity for government entities to fulfill their financial obligations to service providers promptly, ensuring uninterrupted services and avoiding potential disruptions.

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