- FG Seeks Approval for $17bn Loan from China
President Muhammadu Buhari led administration on Tuesday defended why the Federal Government needs $29.96 billion loan.
According to the Minister of Finance, Zainab Ahmed, who defended the loan application in the Senate, the administration needs $29.96 billion loan to fund necessary infrastructure in the country.
She explained that $6 billion of the $29.96 billion loan had been approved by the 8th National Assembly, leaving a balance of $22.8 billion.
Speaking in front of Senate Committee on Local and foreign loans, the minister said both the government and some states were jointly applying for the loans to finance critical infrastructure.
She added that $17 billion of the total loan would come from the China-Exim Bank, saying other financial institutions have not shown interest in lending to Nigeria in recent months.
She explained that, “The funds ($22.8bn) will be channelled to the funding of infrastructure, which will enhance the productivity of our economy.
“Other projects are in healthcare and education. It also includes projects for the rehabilitation of the North- East geopolitical zone, which has been ravaged by insurgency.
“Others are the Mambila Hydro Power project ($4.9bn), Lagos-Kano modernisation rail project ($4.1bn), the Development Finance project loan being provided by a consortium of World Bank and African Development Bank agencies ($1.28bn).
“Above all, the loan will help us to improve our electricity supply, reduce poverty, create jobs, ensure access to finance, agricultural productivity, guarantee food security, achieve high school enrolment, provide clean potable water, rehabilitate major roads and develop the mining industry.”