The presidency has requested the approval of the senate to allow for additional borrowing of $200million in the 2012-2014 Medium-Term External Borrowing Plan.
This is coming few weeks after the presidency requested the senate to approve the borrowing plan for the sum of $7.9 billion.
In a letter to the senate president, President Goodluck Jonathan explained that the additional sum of $200 million would be expended on water project for Rivers state.
The project would be financed by the African Development Bank (ADB) and would provide potable water supply to residents of river state.
He further stated that the federal government is currently developing a low-income housing finance facility to support the provision of affordable homes for Nigerians.
“This scheme will be financed using a $300million credit facility from the World Bank”.
The letter also stated that “the presidency would like to swap this new $300million facility with the proposed guarantees for the power sector in the draft borrowing plan, thereby ensuring that we do not increase the overall size of loans proposed in the external borrowing plan”.
Okonjo-Iweala assures House
The Minister of Finance, Ngozi Okonjo-Iweala has assured lawmakers in the House of Representatives over the level of borrowing embarked upon by the executive arm of government, both at state and federal level.
Aganga was speaking during a meeting with the House Committee members on Aids, Loans and Debt management at National Assembly Complex.
The meeting was organised to consider President Goodluck Jonathan’s request seeking approval for some of the pipeline projects to be included into the medium term (2012-2014) external borrowing plan.
The minister was before the lawmakers to quell rising tensions over the request by president Jonathan seeking approval to access concessionary loans totalling over $9 billion under its 2012-2014 medium term external borrowing plan had attracted its share of concern.
The House however mandated the committee to arrive at a position on the loan, and present its recommendation to the house for consideration and approval.
The president also stated that “the country needs to issue a $1billion euro bond in continuance of the programme initiated under the administration of President Umaru Musa Yar’adua as well as a $100million diaspora bond.”
