The federal government has sought the approval of the National assembly to take additional loans under the 2016-2018 external borrowing plan. Acting president, Professor Yemi Osinbanjo stated this in a letter to the National Assembly. Here are key points from the letter:
- The acting president made known the government’s intentions in a letter to the House of Representatives.
- $1.28 billion is for the Development Bank of Nigeria.
- 9.2 million euros is for the second phase of the Fafin programme.
- Both loans were meant for the 2014-2016 external borrowing plan.
- Funding arrangements for the programme were concluded in 2015, and Kfw development bank of Germany has their counterpart funds ready.
A drop in crude oil prices and several production shortages has left the Nigerian economy in a recession and the three tiers of government struggling to pay salaries and allowances. The federal government is relying on external loans to finance several capital projects in the 2017 budge. N1.8 trillion has been allocated to debt servicing in this year’s budget.
Fund for Agricultural Finance in Nigeria (FAFIN) was initiated in 2013 by the immediate past administration of President Goodluck Jonathan. Stakeholders in the fund include the Federal Ministry of Agriculture and Rural development, Kfw development bank of Germany and the Nigerian Sovereign Investment Authority (NSIA).
