Presidency Gives Breakdown On How Buhari Plans To Spend $4bn, €710m Fresh Loans [Full Details]

Recall that Buhari on Tuesday forwarded a letter to the National Assembly seeking its approval to borrow fresh $4,054,476,863 and €710 million loans.

Buhari stated that due to the demands in the country, there is a need to raise more funds for some “critical projects”.

PDP, in its reaction, berated Buhari over the plan to obtain fresh foreign loans.

The opposition party rejected the move to borrow the fresh loans, saying that the Buhari administration is mortgaging the future of the country.

The PDP lamented the alleged reckless borrowing by Buhari and the APC, saying Nigerians might eventually not have a nation that they can freely call their own

But in a statement on Saturday, presidential spokesman, Garba Shehu listed projects and beneficiaries of the loans.

He said that 15 projects, across the six geo-political zones, are to be financed with the anticipated funds from multilateral institutions, under the 2018-2021 medium-term (rolling) external borrowing plan.

According to the presidency, the loans will be sourced 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 finance seven projects including the $125million grant for ‘‘Better Education Services for All’’.

The Global Partnership for Education grant is expected to increase equitable access for out-of-school children and improve literacy in focus states.

The grant, which will be implemented by the Federal Ministry of Education and the Universal Basic Education Commission (UBEC), will strengthen accountability for results in basic Education in Katsina, Oyo and Adamawa States.

Other projects to be financed by the World Bank are, the State Fiscal, Transparency, Accountability and Sustainability Programme for Results as well as the Agro-Processing, Productivity, Enhancement and Livelihood Improvement Support Project.

The benefiting states for the agro-processing project are, Kogi, Kaduna, Kano, Cross River, Enugu and Lagos with the Federal Ministry of Agriculture and Rural Development as the implementing ministry.

“The objective of the project is to enhance agricultural productivity of small and medium-scale farmers and improve value addition along priority value chains in the participating States”, Shehu noted.

He said the World Bank is financing the Nigeria Sustainable Water Supply, Sanitation and Hygiene (WASH) project in Delta, Ekiti, Gombe, Kaduna, Katsina, Imo and Plateau States, for the next five years.

According to him, the project when completed, will improve rural water supply, sanitation and hygiene nationwide towards achieving Sustainable Development Goals (SDGs) for water supply and sanitation by 2030.

A total of 29 states are listed as beneficiaries of the Agro-Climatic Resilience in Arid Zone Landscape project, which is expected to reduce natural resource management conflicts in dry and semi-arid ecosystems in Nigeria.

The benefiting states for the project to be co-financed by World Bank and European Investment Bank (EIB) are Akwa Ibom, Borno, Oyo, Sokoto, Kano, Katsina, Edo, Plateau.

Others include Abia, Nasarawa, Delta, Niger, Gombe, Imo, Enugu, Kogi, Anambra, Niger, Ebonyi, Cross River, Ondo, Kaduna, Kebbi, Jigawa, Bauchi, Ekiti, Ogun, Benue, Yobe and Kwara.

“The World Bank is also funding the Livestock Productivity and Resilience project in no fewer than 19 States and the Federal Capital Territory (FCT).

“The China EXIM Bank is expected to finance the construction of the branch line of Apapa-TinCan Island Port, under the Lagos-Ibadan Railway modernisation project.

“The French Development Agency will finance two projects, which include the National Digital Identity Management project and the Kaduna Bus Rapid Transport Project. The digital identity project will be co-financed with World Bank and EIB.

“The Value Chain Development Programme to be financed by IFAD and implemented in Anambra, Benue, Ebonyi, Niger, Ogun, Taraba, Nasarawa, Enugu and Kogi states will empower 100,000 farmers, including over 6,000 and 3,000 processors and traders respectively.

“The loan facility to be provided by European ECA/KfW/IPEX/APC will be spent on the construction of the Standard Gauge Rail (SGR) linking Nigeria with Niger Republic from Kano-Katsina-Daura-Jibiya-Maradi with a branch to Dutse.

“The specific project title, Kano-Maradi SGR with a branch to Dutse, has an implementation period of 30 months and will be implemented by the Federal Ministry of Transport.

“The Chinese African Development Fund through the Bank of China is expected to provide a loan facility of $325 million for the establishment of three power and renewable energy projects including solar cells production facility Phase I & II, electric power transformer production, Plants 1, II, III and high voltage testing laboratory.

“The National Agency for Science and Engineering Infrastructure (NASENI) will implement the project aimed at increasing local capacity and capability in the development of power and renewable energy technologies and infrastructure.

“Credit Suisse will finance major industrialisation projects as well as micro, small and medium enterprises schemes to be executed by the Bank of Industry while SINOSURE and Standard Chartered Bank will provide funds for the provision of 17MW Hybrid Solar Power infrastructure for the National Assembly (NASS) complex.

“The project, with an implementation period of five years, is expected to address ‘‘NASS power supply deficit and reduce the higher overhead burdensome cost of running and maintaining fossil fuel generators (25MW installed capacity) to power the assembly complex”, the statement read.