Nigeria is to pay N45 billion as interest on the $1 billion foreign loan to be taken by the Federal Government for the purchase of military hardware, it emerged yesterday.

President Goodluck Jonathan had in July asked the National Assembly to approve the foreign loan, which is to be used to ramp up spending on military equipment for the battle against BH insurgency.

The House of Representatives heard yesterday that the loan is to be repaid in yearly installments of N30 billion for seven years, making a total of N210 billion.
Our correspondents report that based on this, the additional N45 billion represents interest and other charges on the principal sum of N165 billion, which is the naira equivalent of the $1 billion loan.

House of Representatives Finance Committee chairman Abdulmumini Jibril told lawmakers yesterday that during interactions with stakeholders, the committee discovered that Nigeria would have to cough out about N30 billion annually for seven years to defray the loan.
He explained that the yearly repayments would be captured in the 2015 Federal budget.

Jibrin said his committee and the Committee on Debts and Loans, which are saddled with the responsibility of interfacing with stakeholders on the loan, must ask some relevant questions on the issue. He said the panels were trying to establish the portion of the military hardware that would go to each security agency, among other issues.

Jibrin added that some of the security agencies do not even know what they would get from the equipment to be procured, hence the need to do a thorough job.

He asked the House to give them two weeks to conclude work on the loan request. But Speaker Aminu Waziri Tambuwal directed them to present their report “latest by next Tuesday.”

http://www.dailytrust.com.ng/daily/top-stories/36888-nigeria-to-pay-n45bn-interest-on-1bn-loan

Make dem kukuma sell nigeria

Why criticise a Credit facility you can't provide a substitute?

What is the intention of this publication for goodness sake? Stop the loan and blame the government when Soldiers lament of superior fire power from Boko fighters?

Extreme Antagonism makes the brain thoughtless and blinds the conscience.

Let's just hope the money will be use for the intended purpose.
I don't want to hear in the nearest future that half of the money is missing, cuz that is the trademark of the present administration.

21 % interest on that huge amount for a seven year repayment period is not bad idea. Because even my bank collected more than 22% interest for the soft loan I took to buy some few household equipment and the repayment period was strictly 2 years.

The topic ought to be "NIGERIANS TO PAY #45bn on $1bn LOAN"