FG approves $403m loans for APC states

The Federal Executive Council gave the go head to President Goodluck Jonathan’s anticipatory approval of different foreign loans totaling about $403million for Lagos, Rivers, Ogun and Osun States among others. This was in addition to $1.2billion multi-donor credits approved for the establishment of the proposed Development Bank of Nigeria. Another $295million foreign loans were approved for other developmental projects across the country. The Minister of State, Finance, Ambassador Bashir Yuguda who addressed state house correspondents after the meeting said the the loans which guaranteed by the government were for states being governed by the All Progressives Congress further confirmed Jonathan’s position that he is the President of all Nigerians. He said the President had identified the distinction between governance and politics and would not tribalise his office for any reason. According to the minister, the council approved the President’s anticipatory approval to obtain $100 million credit from the French Development Agency in support of Lagos Integrated Urban Development Project (Eko- UP). “The facility is meant to improve living conditions of the most vulnerable urban population of metropolitan Lagos, improve management and treatment of solid waste, strengthen the capacity of Lagos state and implement urban development projects in Lagos State,” he explained. He gave the repayment period for the loan as 20 years, including seven years moratorium, commitment fee of 0.25 per cent per annum and an appraisal fee of 0.25 per cent. The projects has three major components: slum upgrading in the two local council development authorities of Ifelodun and Bariga by the Lagos State Urban Renewal Authority; construction of solid waste management facilities in the state by Lagos State Waste Management Authority and provision of capacity building and technical assistance for LASURA, LAWMA, Project Management Unit and the two LCDAs. For Rivers State, Yuguda said the council gave approval for African Development Bank’s credit facility in the sum of $200 million for the proposed Port Harcourt water supply and sanitation project as well as an African Development Fund’s credit of $5million to support Urban Water Sector Reform Project. He said the credit facility would be secured from ADB with a repayment period of 15 years, five years moratorium, adding that the interest is enhanced variable spread loan with lending spread of 0.60 per cent per annum which translate to 1.56 per cent.