By ADEBIYI ADEDAPO |
The House of Representatives yesterday approved President Muhammadu Buhari’s request to obtain $7.031 billion and £995million external loan.
The Senate had last Wednesday the loan requests. and the breakdown showed that the sum of $5.513 billion is to finance Federal Government’s revised 2020 budget deficit, £995 million to improve food security while $1.5 billion is for state governments facing fiscal challenges arising from the COVID-19 pandemic.
The House considered the report of its Committee on Aids, Loans and Debt Management.
The House approved the sum of $1.5 billion external borrowings to finance State Governments facing fiscal challenges arising from the COVID-19 pandemic.
Breakdown of the $1.5 billion showed that $750 million for State Fiscal Transparency Accountability and Sustainability Program is to attract 2.45% per annum (0.7% service charge, 0.5% commitment charge, and 1.25% interest rate), 5 years grace period, and 25 years tenor while $750 million for COVID-19 Action Recovery and Economic Stimulus Program to support state-level efforts to protect livelihoods, ensure food security and stimulate economic activity is to attract 0.75% per annum and 0.25% commitment charge and 1.25% interest rate), 5 years grace period and 25 years tenor.
Export-Import Bank of Brazil (BNDES) and Deutsche Bank of Germany are to provide 671 million Euros and 324 million for the Green Imperative to enhance mechanisation of agriculture and agro-processing in Nigeria at 3 years and 2 years grace period, 15 years and 7 years tenors as well as 2.935% and 2.87% interest rate per annum respectively.
The lawmakers affirmed that the terms and conditions of the loans from each Lender as contained in a duly executed Loan Agreements be forwarded to the National Assembly for proper documentation.
Also at plenary, the House approved the N1,678,715,061,014 budget for the Nigeria Customs Service for the year ending 31st December 2021.
The lawmakers approved the budget sequel to the adoption of the recommendations of the House Committee on Customs and Excise, chaired by Hon Leke Abejide.