The Senate on Tuesday approved $1.5 billion and €995 million (approximately N1 trillion at official exchange rates) external loan requests of the president.
The approval was sequel to the consideration of the report of the Senate Committee Local and Foreign Debts presented by its chairman, Clifford Odia (PDP, Edo Central).
President Muhamadu Buhari had in May 2020, sent a letter to the Senate seeking its approval for another batch of external loans to enable the administration to finance the 2020 budget deficit, ‘critical projects’, and support some states of the federation.
Below are the top ways ordinary Nigerians can benefit from this Federal government newly approved loan.
- COVID-19 Action Recovery and economic stimulus programme to support state level
- Green Imperative to enhance mechanisation of Agriculture and agro progressing in Nigeria (GIP)
- Fiscal Transparency, Accountability and Sustainability (SFTAS) programme to provide fiscal support to states
Keep reading so you can understand more details on how this loan will be of benefit to ordinary Nigerians.
The federal government said ”the loans will be used to execute priority projects and support state governments in stimulating their economy, adversely hit by the COVID-19 pandemic”.
In his presentation, Mr Ordia noted that the borrowings are largely concessional loans with low interest rates and a reasonable moratorium and payback period.
ort state level efforts to protect livelihoods, ensure food security and stimulate economic activity (N-CARES).
– €671 million, €324 million and €995 million from the Export-Import Bank of Brazil (BNDES) & Deutsche Bank of Germany for the Green Imperative to enhance mechanisation of Agriculture and agro progressing in Nigeria (GIP).