How $29.96bn loan will be spent – FG

The Federal Government has given a breakdown on how it intends to spend the $29.96bn loan it plans to borrow.

The FG says it plans to get the loan from the World Bank, African Development Bank, Japan International Co-operation Agency, Islamic Development Bank and China EximBank in the three years

In a statement issued on Thursday by the Special Adviser to the Minister of Finance, Mr. Festus Akanbi, the loan will be used majorly for infrastructural purposes.

According to the statement, the Federal Government will take $25.8bn and states $4.1bn.

$18.3bn will be spent on infrastructure development, with $14.6bn going to federal projects and $3.7bn going to state projects.

The projects billed to benefit from the loans are the Mambila Hydro Electric Power Project, which will get $4.8bn and the Abuja Mass Rail Transit project, phase two getting $1.6bn.

Also, $3.5bn would be used for the completion of the Railway Modernisation Coastal Project from Calabar to Port Harcourt-Onne Deep Sea Port segment.

About $2.4bn will go to the Lagos-Kano Railway Modernisation project; $1.3bn is specifically for the Lagos-Ibadan segment and $1.1 bn will go to the Kano-Kaduna segment.

The FG says $4.5bn will be used to acquire Euro bonds, while $3.5bn will be dedicated to the Federal Government budget support.

Education and health projects at state and federal levels will receive $2.2bn.

Similarly, $1.2bn is set aside for agriculture projects at both levels and $200m is for economic management and statistics.

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