DEBT TRAP: Finance Minister Okonjo-Iweala says FG to borrow $9.3 billion in two years

Published:6 Nov, 2012

THE Federal Government has amended its borrowing plan for infrastructural development, reviewing its proposed debt profile up from $7.9bn to $9.3bn between 2012 and 2014.

The government will source a total external loan of $9.3bn from this year to 2014 to develop infrastructure, particularly in the agricultural, housing, education, health and transport sectors.

Minister of Finance, Dr. Ngozi Okonjo-Iweala, said the increase consituted an amendment to the original $7.9bn proposed in the 2012-2014 Borrowing Plan the Federal Government earlier sent to the National Assembly.

The amended borrowing plan showed an increase of $1.4bn.

The country’s total external debt stood at $6.2bn as of September 30, while the domestic debt profile was N6.3tr as of the same date.

Okonjo-Iweala on Monday appeared before the House Committee on Loans/Aids/Debts along with officials of the Debt Management Office to defend the amended plan.

She explained that out of the $1.4bn, the sum of $1bn was expected from a Euro Bond the government would issue in 2013 and that another $200m African Development Bank loan would be sourced for water projects in Rivers State.

The minister said that another $100m would be sourced from a Diaspora Bond “as a way of bringing our people to put their funds in the provision of infrastructure” in the country.

The amendments also included the swapping of a $300m loan sourced from the World Bank for the power sector to the provision of housing.

The minister said, “We have to really explain how this swapping came about so that people will not accuse us of taking money for power to housing.

“The World Bank already made a provision of $600m credit guarantee for power sector.

“This money has not been utilised and it is the position of the bank that instead of asking for another $300m for the same power, the money should be applied in housing.

“When the $600m is utilised, we can think of additional funds in this regard.”

Giving a breakdown of how the entire $9.3bn would be spent, the minister said that $450m would be earmarked for erosion and flood control projects in the South-East states and Cross River state.

According to her, $200m will be used to fund the FADAMA agriculture projects in some states in the North, while $150m will be spent on educational projects in Edo State.

She stated that $234m would be spent on power projects in Zungeru and another $136m on water supply projects in Zaria.

The $500m China-Exim Bank loan for the Abuja Light Rail Project was also captured in the borrowing plan.

Members of the committee, headed by Mr. Ajani Adeyinka, however raised concerns over the implications of the proposed loans for Nigeria’s future.

Via Punch

0 thoughts on “DEBT TRAP: Finance Minister Okonjo-Iweala says FG to borrow $9.3 billion in two years”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Recent Posts

FG re-introduces teaching of History in primary, secondary school.

The federal government has finally re-introduced History as one of the subjects in the nation’s primary and secondary schools’ curriculum, explaining that its introduction as an independent subject and not a mere theme was necessitated by the clamour and concerns by several groups, including the Presidency, National Assembly and other critical stakeholders in the education sector. The Minister of Education, Mallam Adamu Adamu, had urged delegates to the recent National Council of Education, NCE, to consider the disarticulation of social...

94,000 pregnant women HIV positive in Zamfara – USAID.

No fewer than 94,141 pregnant women are said to be HIV/AIDS positive in Zamfara. A United States Agency for International Aids (USAID) funded programme said this through Management Services for Health Organisation the USAID Prevention and Organisational Systems-AIDS Care and Treatment (PRO-ACT). The team leader of the organisation, Mr Aminu Sarki, spoke at the end of a seven-year treatment and support rolling plan for those living with HIV in the state in Gusau on Thursday. Sarki said more than 500 women living...

Customs generates N11 billion in nine months in Oyo.

The Nigeria Customs Service (NCS), Oyo/Osun Command, said it had generated the sum of N11.1 billion between the months of January and September this year. The Customs Area Controller, Temitope Ogunkua, who disclosed this while briefing reporters on the activities of the command, said 188 assorted seizures were made with a duty paid value of N368 million within the period under review. Ogunkua, who assured of the command’s readiness to tackle economic saboteurs and work for the security well-being of the...

Kaduna To Spend N2.55bn On Drones, CCTV

The Kaduna State Government has earmarked over N2.55bn to procure CCTV cameras and drones, to provide adequate security cover in the state in 2017. More than N1.5 billion of the amount was earmarked for the procurement and installation of CCTV cameras in strategic areas of the state, to reduce crime. The figure is contained in the state’s 2017 budget document currently before the state House of Assembly. He said, “The N1.5 billion is for...

Commercial Sex Workers Take Over Jos Trade Fair

Activities of commercial sex works are overshadowing those of exhibitors and traders at the 2016 Jos Trade Fair, holding at the Jos Polo Field, in Jos North local government area of Plateau state. A reporter at the trade fair Thursday night noticed hordes of young sex workers brazenly soliciting patronage by male participants at the event. One of the young workers, who refused to give her name, said the illicit trade was booming because the...

Sultan’s 10th Anniversary Begins Nov. 2

The Sokoto State Government will hold an International Symposium on the legendary Sokoto Caliphate as part of activities marking the 10th anniversary of the Sultan of Sokoto, Alhaji Sa’ad Abubakar III on the throne. ” The caliphate’s contributions to the economy, politics, leadership and good governance in the sub-Saharan region will be the focus of the symposium.” Commissioner for Information, Alhaji Danladi Bako, made this known in a statement in Sokoto on Friday. Bako,...

Attacks on oil installations, vandalism crash monthly allocation by N90.2bn

Despite increase in average price of crude oil at global market from $46.0 per barrel in May to $48.43 in June, sustained attacks on oil installations and pipeline vandalism have reduced total allocation available for sharing to the three tiers of government by N90.2 billion. The picture was made clearer yesterday as the sum of N420 billion was approved for September for sharing as against N510.270 billion disbursed among the three tiers of government in August. Militant attacks on oil installation...

MTN Denies Illegal Transfer Of $14 bn From Nigeria

South Africa’s MTN has denied it illegally transferred $13.9 billion from Nigeria in the latest scandal to hit the telecom firm in its largest market in the continent. The Johannesburg-based firm is facing a parliamentary probe over accusations it connived with senior Nigerian officials to move the funds out of the country without complying with the law. “We would like to reiterate that at no point did MTN Nigeria (MTNN) illegally repatriate funds out of...

Trevor Noah pulls out of 2016 MTV MAMA Awards.

South African comedian Trevor Noah has announced his inability to host the 2016 MTV Africa Music Award (MAMA). The Comedy Central host made the announcement earlier on Friday, explaining he has been suffering from a severe respiratory and ear infection. “Due to the infection and strain on my vocal chords the doctor has ordered me to rest. I desperately wish I could dismiss the doctor but the added risk of flying means the decision would be highly irresponsible  and may cause...

How Mamman Daura became ‘Nigeria’s most powerful nephew’.

Mamman Daura is today described as the “most powerful nephew” in Nigeria by virtue of his closeness to President Muhammadu Buhari. At the centre of the recent complaints by Aisha, Buhari’s wife, is that those who did not participate in the campaign were the ones calling the shots in her husband’s government TheCable understands that Duara is one of those she was referring to, having already complained privately about him. However, what has often not been reported is how Daura came to wield...

No Plan To Reduce Nigerian Flights- Lufthansa

An international carrier, Lufthansa Airline, yesterday said it had no plan to reduce its flight operations in Nigeria. The News Agency of Nigeria (NAN) reported that the airline’s Media Consultant, Mr. Hakeem Jimoh, made the disclosure to aviation correspondents in Lagos. Two foreign airlines, Emirates and Kenya Airways , recently announced the suspension of their flights to the Nnamdi Azikiwe International Airport in Abuja. While Emirates Airlines said it would stop flights to Abuja from October 22, Kenya Airways said its flights...

World Bank raises 2017 crude oil prices’ forecast to $55 per barrel.

The World Bank yesterday revised upwards its 2017 forecast for crude oil prices, raising it from $53 per barrel to $55 per barrel as members of the Organization of the Petroleum Exporting Countries (OPEC) prepare to cut output after a long period of unrestrained output. The Bank, in its latest Commodity Markets Outlook, projected that energy prices, which include oil, natural gas and coal, will jump almost 25 percent overall next year, a larger increase than anticipated in July, while...

Suspension: Jibrin withdraws suit against House of Reps.

The Federal High Court, Abuja, on Friday struck out the suit of former Chairman, House of Representatives Committee on Appropriations, Mr. Abdulmumin Jibrin, challenging his suspension from the House. The judge, Justice John Tsoho, struck out the matter after Jibrin’s Counsel, Mr. Chukuma Nwachukwu, told the court that his client had filed a notice of discontinuance. Tsoho decline the request of the defendants for a N200, 000 cost, holding that the defendants were “strong institution and personality”. At the hearing, Jibrin’s counsel,...

Aregbesola tells Nigerians to practice birth control, shun foreign goods.

The Governor of Osun state, Rauf Aregbesola has urged Nigerians to practice birth control and curb excessive desire for foreign food items in order to survive recession. The governor said this on Thursday in Osogbo while hosting some youth who just returned from a training sponsored by the state government in modern agricultural technique at Germany. He explained that his government’s decision to send the youths for the agriculture programme is to boost food production in the state, adding that this...

Meet The Baby Who Was Born Twice

Margaret Boemer went for a routine ultrasound 16 weeks into her pregnancy with her third child. She quickly found out that things were far from routine. "They saw something on the scan, and the doctor came in and told us that there was something seriously wrong with our baby and that she had a sacrococcygeal teratoma," the Plano, Texas, mom said in an interview shared by Texas Children's Hospital. "And it was very shocking and...

Fashion for Charity, Spanish “LaLiga” Unite for IDPs with #KickForHope2016

Who Fashion For Charity Is... Fashion for Charity harnesses the power of fashion, entertainment, and the visual arts to help vulnerable people. From Abuja to Milan to Atlanta, various industry players in fash- ion design, fashion photography, fashion media, modeling and more, have come together to become a force for good in Nigeria and beyond. This year, Fashion for Charity has been focusing on the plight of internally displaced persons from north-eastern Nige- ria. Fashion...

Why Always Me: Another Supreme Court Justice accuses Amaechi of bribery.

The last of the two justices of the Supreme Court arrested during the invasion of the residences of the justices of the court by the Department of State Security Service, DSS, Justice Sylvester Ngwuta, yesterday accused the former governor of Rivers State and now, Minister of Transportation, Mr. Chibuike Rotimi Amaechi of masterminding the operation. Also yesterday, the Nigerian Bar Association, NBA called on the judges accused of corruption to cease adjudicating on cases until the allegations against them are...

First Contest For Mr & Miss Albino Held In Kenya

Youngsters with albinism are stepping into the limelight, hoping to be named Kenya's first Mr and Miss Albino. Albinism has been associated with many negative misconceptions and superstitions. As a result, many albinos suffer stigma, alienation and even physical abuse. The pageant being held later in Kenya's capital, Nairobi, also aims to boost the confidence of young people with albinism. Read More: BBC

Pulse: Obanikoro is going down, but he won’t do so alone.

The walls are closing in on Musiliu Obanikoro, former Minister of State for Defence. Obanikoro has been singing his way deeper and deeper into trouble, sources at the Economic and Financial Crimes Commission (EFCC) have told Pulse. Obanikoro surprisingly turned himself into the waiting arms of the anti-graft agency as soon as he touched down in Nigeria from the United States last week. The former Lagos State Governorship aspirant on the platform of the Peoples Democratic...

South Africa To Quit International Criminal Court

South Africa is pulling out of the International Criminal Court (ICC) because its obligations are inconsistent with laws giving sitting leaders diplomatic immunity, according to government officials. Justice Minister Michael Masutha said on Friday that the government will soon submit a bill in parliament to withdraw from the court in The Hague, a move that comes as several African countries express concerns over what they call the ICC's disproportionate targeting of the continent. The bill will propose...

Russell Wilson & Ciara Are Reportedly Expecting Their First Child

Do you like hard-hitting news and journalism with a capital J? Good, because Ciara is reportedly pregnant with Russell Wilson's baby. The news blew up on social media after Ciara posted an Instagram video of her arriving to a party wearing a loose-fitting tuxedo. Some fans in the comment claimed it was a baby-bump outfit. And E! News is now reporting that the happy couple are indeed expecting a child. While she has not commented on...