TICKER: FG to borrow $9.3billion

The Federal Government has amended its borrowing plan for infrastructural development, reviewing its proposed debt profile up from $7.9bn to $9.3bn between 2012 and 2014.

The government will source a total external loan of $9.3bn from this year to 2014 to develop infrastructure, particularly in the agricultural, housing, education, health and transport sectors.

Minister of Finance, Dr. Ngozi Okonjo-Iweala, said the increase consituted an amendment to the original $7.9bn proposed in the 2012-2014 Borrowing Plan the Federal Government earlier sent to the National Assembly.

The amended borrowing plan showed an increase of $1.4bn.

The country’s total external debt stood at $6.2bn as of September 30, while the domestic debt profile was N6.3tr as of the same date.

Okonjo-Iweala on Monday appeared before the House Committee on Loans/Aids/Debts along with officials of the Debt Management Office to defend the amended plan.

She explained that out of the $1.4bn, the sum of $1bn was expected from a Euro Bond the government would issue in 2013 and that another $200m African Development Bank loan would be sourced for water projects in Rivers State.

The minister said that another $100m would be sourced from a Diaspora Bond “as a way of bringing our people to put their funds in the provision of infrastructure” in the country.

The amendments also included the swapping of a $300m loan sourced from the World Bank for the power sector to the provision of housing.

The minister said, “We have to really explain how this swapping came about so that people will not accuse us of taking money for power to housing.

“The World Bank already made a provision of $600m credit guarantee for power sector.

“This money has not been utilised and it is the position of the bank that instead of asking for another $300m for the same power, the money should be applied in housing.

“When the $600m is utilised, we can think of additional funds in this regard.”

Giving a breakdown of how the entire $9.3bn would be spent, the minister said that $450m would be earmarked for erosion and flood control projects in the South-East states and Cross River state.

According to her, $200m will be used to fund the FADAMA agriculture projects in some states in the North, while $150m will be spent on educational projects in Edo State.

– The Punch

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  1. So what did the same woman and her Obasanjo one time off payment of the so-called debt of their 'Nigeria' do with the windfall that paying the 'non existing' debt to foreign criminals?

    Didn't they say then that the reason for paying off @Trillions was to help improve infrastructure with the ones that otherwise would be used in servicing the so-called loan???

    Nigeria will remain what the evil British made it to be 'a mass graveyard of black man' unless people wake up fast! It is rather a place where people have brain yet they cannot think, they have eyes yet they see nothing, they have ears yet they hear nada.. Yet on top of that they are the most argumentative and all round solution finder for others, but not theirs! Talk to an average so-called 'Nigerian' he/she will proclaim 'God made Nigeria to be one', which underscores the level of their rot! The blasphemy of no equal match! They cast and bind Satan/Devil non stop, yet they glorify and elevate main agent of Satan (imperial British), who created the mess (Nigeria) to the status of 'God'!

    May God in His infinite mercy continue to forgive them, for they know not what they are doing!

    IMPORTANT NOTE: Good advice to all those '419'ers so-called lenders, they should make sure they have the names and detailed information of those that signed for those so-called loans, so they can hold them responsible for their money when that house of cards called Nigeria collapse soon! Their criminal investment this time will surely disappear forever!

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