FG Approves $403m Loan For Rivers, Others

The Federal Executive
Council last week  approved the request of $403 million loan for Rivers, Lagos, Osun, and Ogun statues to enable them complete ongoing projects in their various states.
According to the statement by the minister of State for Finance, Ambassdor Bashir Yuguda, the council gave approve for a $200 million African Development Banks facility for the proposed Port Harcourt water supply and sanitation project as well as the African Development Fund credit of $5million to support the urban water sector reform that is ongoing in the state.
Yuguda who said the credit facility would be secured from African Development Bank with a repayment period of 15 years and five years moratorium added that the interest was enhanced by variable spread loan, with lending spread of 0.60 per cent per annum, which translate to 1.56 per cent.
For the ADF he said the principal would be repaid over a period of 22 years, with eight years grace period and internet rate period and interest rate of one per cent per annum.
The minister noted that the council also approved $33.174 million credit from the French development Agency (FDA) in support of the Ogun State water supply project.
Further more, the council approved the request for a $100 million credit from the French Development Agency in support of the Lagos integrated Urban Devleopment project from the FDA as well as $65 million for the Osun water supply and sanitation projects.
The minister said the $1.280 billion loan for the establishment of the proposed Development Bank would come from the International Bank for Reconstruction and Development, (World Bank), Africa Development Bank as well as the German and French Development Agenceis in the sums of $500 million, $200 million and $130 million, respectively.