Abuja — Nigeria's total debt portfolio is currently put at $3.75 billion, out which the nation is indebted to the World Bank to the tune of $3.2 billion and $500 million is owed the African Development Bank (ADB).

This was disclosed as the Federal Government also secured additional financing of $50 million from the World Bank to combat polio in the country. This brings to a total of $81.44 million that had been secured from the Bretton Woods institution.
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The facility is an International Development Association (IDA) credit, a concessionary window of the World Bank. An IDA credit is highly concessional loan which is interest-free and repayable over 35 to 40 years, with a 10 year grace period but with a commitment and service charges of 0.50 percent and 0.75 percent respectively.

Finance Minister, Dr. Mansur Muhtar, during a brief agreement signing ceremony for the $50 million financing for polio eradication projects, yesterday in Abuja, argued that, with the nature of the nation's current debt portfolio, Nigeria was not getting into any trap as the loans were highly concessionary and interest-free.

"This kind of loan can be justified. There is investment in human capital and with the effort I personally put on as the Director-General of the Debt Management Office (DMO) to exit the Paris Club debt, I would not do anything now that could get us into debt trap.

"The IDA credit, as you are aware, is a highly concessional facility with a repayable period of 40 years, including a 10 year moratorium. It attracts a commitment charge of 0.50 percent per annum payable on the undisbursed amount and a service charge of 0.75 percent per annum payable on the amount withdrawn," he said.

Muhtar said polio eradication was an on-going project with national and cross border health challenges, which required sustained funding by the Government to ensure that some states of the federation meet their commitments regarding the procurement of the Oral Polio Vaccine.

The Finance Minister who stated that, "the Project falls within the World Bank's social development category and does not attract counterpart funds as an effective condition" said, "it was based on these considerations that the additional financing assistance was sought, and we are all witnessing today its actualisation in the signing of the Agreement."

Muhtar signed for the Federal Government and Country Director of World Bank, Mr. Onno Ruhl signed on behalf of the bank.

Remarking, Ruhl lamented that " Nigeria is one of only four countries where polio is still endemic along with Pakistan , Afghanistan and India .

Given this scenario, he added, the project supports a last push to eradicate polio globally. "Thus it not only benefits Nigeria, but is also a global public good."

Ruhl recalled that, Nigeria had made significant progress in 2007 with a 90 percent reduction in Wild Polio Virus (WPV) prevalence in that year, but"the national effort suffered a setback in 2008 with increased numbers of new polio cases."

"The increase was primarily due to the large number of areas (particularly in certain Northern States) where Oral Polio Vaccine (OPV) coverage has been suboptimal and eligible children were being missed in the vaccination campaigns," he explained

Source: http://allafrica.com/stories/200904030159.html

Up Up and Away. Another cycle of madness has started

I thought we had wiped out our debts

Is this another one under the present regime?

GBESE NATION!

It is only a mad nation with mad leader and a population like l_laugh that will enjoy this madness. you have about 45 billion in reserve and you go borrow 3.75 billion dont u think that is madness. The lender tells you i will borrow you 3.75 billion with no interest charge but i will charge a loan fee of 1.75%

It is only a mad nation with mad leader and a population  like l_laugh that will enjoy this madness.  you have about 45 billion in reserve and you go borrow 3.75 billion  dont u think that is madness.   The lender tells you  i will borrow you 3.75 billion with no interest charge but i will charge a loan fee of 1.75%