Federal Executive Council, FEC, yesterday approved a three-year external borrowing plan.
Minister of Finance, Kemi Adeosun, who disclosed this at a post-FEC briefing, said the loan would go to strategic sectors to revive the economy.
According to her, long term money or concessionary loans would enable the country to solve problems in some sectors, especially power, stressing that significant amount of money are allocated to power projects.
She explained that agriculture would be the largest beneficiary of the borrowing plan as some programmes in the sector would be restructured and reformed.
“Recall when we came in we said our external borrowings strategy will be focused on confessional debts, low cost loans particularly from the multi-lateral agencies.
“So this plan we have put forward today which was approved by FEC will be transmitted to the National Assembly for approval.
It includes concessional loans average interest rates of 1.25 per cent, four to seven year moratorium, 20 years to pay from agencies such as the World Bank, African Development Bank, China Exim Bank, and other development agencies like Japanese International Cooperation Agency, JICA.
The sectors of the economy that will help to revive the economy, including power. “Significant amount of money is located to power projects, particularly transmission. This is long term money that will enable us solve some of the problems in that sector.
“There are projects around polio. There are some money that have been allocated to us to help us do some massive immunization, in order to control this recent outbreak. This is being provided by the World Bank,” she said.
According to her, there was also provision for solid minerals following the discovery of nickel in the country, saying that the World Bank was supporting the project by the Ministry of Mines and Steel with $150m to strengthen capacity in the area, while the balance would come from the Eurobond.
She described the statistics released by the National Bureau of Statistics, NBS, as the worst possible time for the country, but maintained that