How FG plans to utilise fresh foreign loans

How FG plans to utilise fresh foreign loans

•New borrowings push Nigeria’s debt stock to N52tr

The fresh $16.23 billion and 1.02 billion euro loans and the $125 million grant approved by the Senate for the Federal Government will be used for project funding in power, digital economy, industries, education and transportation sectors.

Other priority projects are in the financial and national planning sector, women affairs, environment and climate as well as governmental institutions, The Nation learnt yesterday.

The loans and grants are part of the 2018-2020 External Borrowing (Rolling) Plan of the Federal Government.

The specific projects they are meant for implantation are contained in the report of the Senate Committee on Local and Foreign Debts.

In the power sector, the government plans to source $550 million from the World Bank and African Development Bank (AfDB). The loan of $350 (World Bank) and $200 million will be spent on the Nigeria Electrification Project (Off-Grid).

Also listed under the sector is $29.3 million to be sourced from the World Bank for a 330 KV DC North Core Interconnection of Nigeria/Niger-Benin/Togo-Burkina Faso.

Others are the $210 million World Bank facility for Nigeria Transmission Expansion Project (NTEP-1) and 245 million euros from the French Development Agency (AFD) for the Northern Corridor Transmission Project.

According to the committee, the Nigeria Transmission Expansion Project (NTEP-1) would involve the reconstruction of two 330kV double circuit quad transmission lines (the 138km Alaoji–Onitsha and 125km Delta–Benin).

Others are the construction of one 330kV double circuit quad transmission line, 204km Kaduna–Kano; construction of two 330/132kV, 2 x 150MVA Substations at Zaria and Millennium City; and the construction of two 132/33kV, 2x60MVA Substations at Rigasa and Jaji.

Another 100 million euro AFD facility is being sought for National Digital Identity for Development Project to be implemented by the Ministry of Communications and Digital Economy.

The project to be executed in the industrial sector of the economy is the “Sovereign Guarantee for the Issuance of Eurobond as Collateral to enable Bank of Industries to fund its Projects” in the sum of 500 million euro (but no more than 750 million euro) to be funded through the International Capital Market (Eurobond).
Culled from The Nation News…
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