Buhari regime defends Nigeria’s growing foreign loans and lists fake projects
The Presidency has backed the growing foreign credit plaguing Nigeria, saying the credits will be used to fund projects and programs that benefit Nigerians.
In a statement on Saturday, President’s spokesman Garba Shehu listed some of the bogus projects and programs on which the loans would be spent.
The Buhari government comes under fire after the president wrote to the Senate to approve a $ 4.054 billion and € 710 million loan.
The opposition People’s Democratic Party (PDP) warned that the All Progressives Congress (APC) government is trying to sell the land.
The opposition said if lawmakers approve the latest proposal and an additional N5.62 trillion loan proposed for the 2022 budget, Nigeria’s Buhari debt will reach “N40 trillion with no clear repayment plan”.
However, Shehu stated that 15 projects in the six geopolitical zones will be funded with the expected funds of multilateral institutions under the medium-term (rolling) external credit plan 2018-2021.
He said the loans will be drawn from the World Bank, French Development Agency (AFD), China-Exim Bank, International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chartered / China Export and Credit (SINOSURE).
A breakdown of the Addendum to the Proposed Pipeline Projects for the 2018-2021 Medium Term (rolling) External Borrowing Plan shows that the World Bank is expected to fund seven projects, including the $ 125 million grant for Better Education Services “. for all”.
“The Global Partnership for Education grant aims to improve equal access for children outside of school and improve literacy in priority countries.
“The grant, provided by the Federal Department of Education and the Universal Basic Education Commission (UBEC), will strengthen accountability for the outcomes of basic education in the states of Katsina, Oyo and Adamawa.
“Other projects funded by the World Bank are the State Fiscal, Transparency, Accountability and Sustainability Program for Results and the Agro-Processing, Productivity, Enhancement and Livelihood Improvement Support Project.
“The beneficiary countries for the agricultural processing project are Kogi, Kaduna, Kano, Cross River, Enugu and Lagos with the Federal Ministry of Agriculture and Rural Development as the implementation ministry.
“The aim of the project is to increase the agricultural productivity of small and medium-sized farmers and to improve value creation along priority value chains in the participating countries,” says Shehu.
“The loan facility provided by the European ECA / KfW / IPEX / APC will be used for the construction of the standard gauge railway (SGR), which connects Nigeria with the Republic of Niger from Kano-Katsina-Daura-Jibiya-Maradi with a branch to Dutse.
“The specific project title Kano-Maradi SGR with a branch in Dutse has an implementation period of 30 months and is implemented by the Federal Ministry of Transport.
“The Chinese African Development Fund is expected to have a 325 million, III loan facility through the Bank of China and a high voltage test laboratory.
“The National Agency for Science and Engineering Infrastructure (NASENI) will implement the project, which aims to increase local capacities and capabilities in the development of electricity and renewable energy technologies and infrastructures.
“Credit Suisse will finance large industrialization projects as well as micro, small and medium-sized enterprises to be carried out by the Bank of Industry, while SINOSURE and the Standard Chartered Bank will finance the provision of a 17 MW hybrid solar power infrastructure for the National Assembly ( NASS.) Provide) complex.
“The project, with an implementation period of five years, is intended to remedy the ” NASS power supply deficit and reduce the higher overhead costs for the operation and maintenance of generators for fossil fuels (25 MW installed capacity) to power the assembly complex,” the statement said added by Shehu on Saturday.