Buhari regime defends Nigeria’s growing foreign lending, lists bogus projects

The presidency has backed the growing external loans that Nigeria is reeling under, saying the loans are meant to finance projects and programs that benefit Nigerians.

In a statement released on Saturday, presidential spokesman Garba Shehu listed a few bogus projects and programs the loans would be spent on.

The Buhari administration has come under fire after the president wrote to the Senate to approve a credit of $ 4.054 billion and € 710 million.

The opposition People’s Democratic Party (PDP) has warned that the All Progressives Congress (APC) government is trying to sell the country.

The opposition said if the legislature approves the latest demand and an additional loan of 5.6 trillion naira proposed for the 2022 budget, Nigeria’s liability under Buhari will reach “40 trillion naira without a specific repayment plan.” .

But Shehu explained that 15 projects, spread across the six geopolitical zones, are to be financed with planned funds from multilateral institutions, as part of the 2018-2021 medium-term (rolling) external borrowing plan.

He said loans will come from the World Bank, Agence Française de Développement (AFD), China-Exim Bank, International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chartered / China. Export and Credit (SINOSURE).

A breakdown of the “ Addendum to Proposed Pipeline Projects for the 2018-2021 Medium-Term (Rolling) External Borrowing Plan ” shows that the World Bank is expected to finance seven projects, including the $ 125 million grant for ” Better education services for all ”.

“The Global Partnership for Education grant is expected to increase equitable access for out-of-school children and improve literacy in target states.

“The grant, which will be implemented by the Federal Ministry of Education and the Commission for Universal Basic Education (UBEC), will strengthen accountability for results in basic education in the states of Katsina, Oyo and Adamawa.

“Other projects that will be financed by the World Bank are the State program in terms of taxation, transparency, accountability and sustainability for results as well as the support project for agro-industry, productivity, improvement and improvement of livelihoods.

“The beneficiary states of the agro-food transformation project are Kogi, Kaduna, Kano, Cross River, Enugu and Lagos, with the Federal Ministry of Agriculture and Rural Development being the executing ministry.

“The objective of the project is to improve agricultural productivity of small and medium-sized farmers and enhance value addition along priority value chains in participating states,” Shehu noted.

“The loan facility that will be provided by the European ECA / KfW / IPEX / APC will be devoted to the construction of the Standard Track Rail (SGR) connecting Nigeria to the Republic of Niger of Kano-Katsina-Daura-Jibiya-Maradi with a branch in Dutse.

“The specific title of the project, Kano-Maradi SGR with a branch in Dutse, has an implementation period of 30 months and will be implemented by the Federal Ministry of Transport.

The China Development Fund for Africa through the Bank of China is expected to provide a loan facility of $ 325 million for the establishment of three energy and renewable energy projects, including the ‘Phase I and II solar cell production facility, production of electrical transformers, plants 1, II, III and high voltage testing laboratory.

“The National Agency for Scientific and Technical Infrastructures (NASENI) will implement the project aimed at increasing local capacities and capacities in the development of energy and renewable technologies and infrastructures.

“Credit Suisse will finance major industrialization projects as well as micro, small and medium enterprise projects to be executed by the Bank of Industry while SINOSURE and Standard Chartered Bank will provide funds for the provision of energy infrastructure. 17 MW hybrid solar for the National Assembly (NASS) complex.

“The project, with an implementation period of five years, is expected to address the ” power supply deficit of NASS and reduce the higher overhead costs associated with the operation and maintenance of fossil fuel generators (capacity installed 25 MW) to power the assembly complex, ”the statement said. of Shehu Saturday added.

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