The Senate, on Wednesday, approved the sum of $1.53billion for economic and power reforms, rural development, special intervention for infrastructural development and social programme development for the Federal Government and 14 states.

The approval was for the Federal Government and some states to access funding facilities in Islamic Development Bank (IDB), the International Development Association (IDA), French Development Agency (FDA) and Indian Line of Credit.

The loans which are in line with Nigeria’s External Borrowing guidelines would improve the state of infrastructure of the beneficiaries.

The loans and credits would be secured on concessionary terms with repayment period of 25 to 40 years and moratorium of seven to 10 years.

The Joint Committees on Finance and National Planning, Economic Affairs and Poverty Alleviation in their recommendations frowned at a situation whereby lenders propose to beneficiary states the type of projects they should execute with the proceed of the facilities.`

It added that “ the terms and conditions of all loans are favourable to the borrowing states and will not in any way imperil Nigeria’s debt burden”

Last year, the Senate approved the second batch of the 2010 external borrowing plan in which it excluded the states but approved the Federal Government’s request to borrow $1.537 billion out of the overall $3.702 billion for which President Goodluck Jonathan had repeatedly requested of the lawmakers.

The first approval was in April 2010 when the lawmakers partially approved $915 million out of the $5.22 billion loan proposed under the 2010 borrowing plan.

But the Senate objected to the request by Ogun State following the inability to reconcile its requested loan with what was approved by the Ministry of Finance.

Kaduna State was also denied approval because they were yet to finish negotiations with the lending agencies.

Source: http://tribune.com.ng/index.php/news/18004-senate-approves-153bn-external-loan-for-fg-and-14-states-