The Acting President, Prof. Yemi Osinbajo, has requested approval of the House of Representatives for fresh $1.28bn and €9m loans under the 2016-2018 External Borrowing Plans of the Federal Government. The money is meant for the Development Bank of Nigeria (DBN) and Fund for Agricultural Finance in Nigeria (FAFIN-II) respectively.
His letter to the House of Representatives which was read on the floor by Speaker Yakubu Dogara yesterday. He said the “multi-donor supported bank” was approved during the administration of former President Goodluck Jonathan and had its financial agreements executed on February 25, 2015.
However, the acting President stated that the $1.28bn, which ought to have been included in the 2014-2016 borrowing plans, was inadvertently omitted. He noted that there was an urgency to re-list the $1.28bn in the 2016-2018 borrowing plans because the creditors were ready to provide the funding.
For instance, Osinbajo said the World Bank Group would provide $500m; African Development Bank, $450m; Kfw Development of Germany, $200m; and French Development Agency, $130m, bringing the total to $1.28bn.
The letter added that the €9m would go into the Fund for Agricultural Finance in Nigeria.Osinbajo stated that the Kfw Development Bank of Germany would provide the money. He stated, “The first phase (FAFIN-I) was in the €10.5m and the financing agreement was executed on the 3rd of October, 2013. It is an investment facility in agricultural financing. The first tranche of FAFIN-I has been fully disbursed and the donor is ready to provide another tranche of €9m for FAFIN-II.
“The second tranche is for the consolidation of the gains in the investment of the first tranche.”
