Nigeria’s Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala Monday said the federal government plans to float a $1 billion Euro-bond and another $100 million Diaspora Fund.
She also sought approval to increase Nigeria’s external borrowing from $7.9 billion to $9.2 billion.
The minister disclosed this at an interactive session with the Hon. Adeyinka Ajayi led House Committee on Loans and Aids.
According to her, from the planned borrowing, $200 million is to be raised for a water project for Rivers State. The Diaspora bond is to drive participation of Nigerians abroad in the development of the country.
Shedding light on the loans, she said that the country’s external debt presently stands at $6.2 billion while domestic debt stands at N6.3 trillion (representing 18.87 percent GDP ration).
The minister noted that from the external borrowing plan for the years under review, the sum of $234.5 million is to be obtained from the Islamic Development Bank (IDB) while $765,756,396.02 is to be financed by Chinese Nexim Bank for the Zungeru 700MW hydro electric power project; $400 million for light rail, aviation and roads; $70 million for power project; and $56.61 million for national urban water sector reforms (Kaduna), while $200 million is for water resources and sanitation projects under Federal Ministry of Water Resources.
She said from the $600 million provided by the World Bank for power projects, the federal government is to draw the sum of $300 million for development of social housing in Abuja; $500 million for Abuja Light Rail; $200 million for agricultural development; $200 million to promote small and medium scale enterprises (SMEs) and improve capacity of the bank; $81.23 million for Zaria water project; $40 million for Nguru water supply; $40 million for Gashua water supply; $40 million for 200 bed ultra modern and equipping of primary health centres in Yobe state.
Also, the sum of $50 million will be set aside for a Dam water supply project in Osun state; $70 million for bilingual education for Alma Jiri educational system; $136.34 million for Zaria regional water supply; $17.32 million for four science secondary schools in Kaduna state; $44.69 million for upgrading of hospital facilities in Kaduna; $200 million for flood and waste management; $200 million for water reform; and $300 million for agricultural reform to support Program for Result (ATA) in the 36 states and FCT among others.
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