₦airaland Forum

Nigerians may repay $5.5bn loan for 30 years, says FG.
The Federal Government has said its external borrowing plan, for which it is seeking the approval of the National Assembly, will take Nigeria between five years and 30 years to repay.
The government also insisted it would have to borrow more to complete a number of ongoing infrastructural projects .
The Minister of Finance , Mrs . Kemi Adeosun, who was represented by the Director -General, Debt Management Office, Patience Oniha, at a defence session organised by the Senate Committee on Local and Foreign Debts in Abuja on Thursday , gave the indication and urged Nigerians to focus on the long- term benefits of the loans .
President Muhammadu Buhari had written to both chambers of the National Assembly, seeking approval for $5. 5bn external loans to finance the 2017 Appropriation Act .
In the letter dated October 4, 2017 , Buhari referred the Senate to the 2017 budget , with a deficit of N 2.356 tn and provision for new borrowing of N2. 321tn .
He said the Act also provided for domestic borrowing of N 1. 254tn and external borrowing of N1. 067tn (about $3. 5bn).
At the session on Thursday , the Chairman of the Senate Committee on Local and Foreign Debts, Senator Shehu Sani , asked Oniha to provide details of the proposed loans , including the rate and tenure.
In her response, Oniha said , “In terms of tenor , from the figures that distinguished senators have reeled out, we have them in various tenors. What you do is at the time you get to the market and you want to price , you will be more certain about the price . It could be anywhere from five to 30 years .
“On borrowing , when the current generation may not be around at that time (payment completion ), the truth is that if we are borrowing in the long term , we are using it to finance capital projects , which are also long- term (projects ) and the benefits of those projects are also long- term (benefits ).
“I believe that some of the roads and even institutions like some universities that we see today were built before some of us were born. We should look at it this way; that the benefits are also long- term (benefits ).”
She also responded to the question on whether the development of the first generation infrastructure in the country was funded with loans , saying, “ I can remember that the Federal Government issued development loan stocks under the first plan and some are actually yet to mature. Those development loan stocks were what the Federal Government used in the 60 s and maybe early 70 s . I know that some of them had 20 to 22 years ’ maturity . At the time, they appeared to be very long. This is not the first time that the government is borrowing on a long- term basis .”
The DMO boss further explained that out of Nigeria ’s debt current stock of N19 tn , 77 per cent was from the domestic market through the various products issued, including Treasury bills, the Federal Government of Nigeria Bonds , the Federal Government Savings Bonds and the recent Sukuk.
“The implication of having that large amount in domestic debt is high debt service because the costs of – meaning interest rates – are high. If the government is so visible and prominent in the local market , it means that we have taken some of the money that should go to the private sector.
“Banks should be able to have large amounts of money to extend to the real sector . If we are not too prominent in the domestic market , there should be more room for banks and other financial institutions to lend to the private sector and, thereby, contributing to economic growth .”
In a statement made available in Abuja on Thursday , the DMO said $2. 5bn of the proposed external borrowing would be used to finance some projects while $3 bn would be used to refinance some domestic debts .
The DMO said , “ The first component of $2. 5bn represents new external borrowing provided for in the 2017 Appropriation Act to part finance the deficit in that budget .
“It will be recalled that the 2017 Appropriation Act provided for new external borrowing of N1 .067 tn or $ 3.5 bn at an exchange rate of USD/ N305 .
“Out of this amount , $300m has been raised through a Diaspora Bond that was issued in June leaving a balance of $3 .2bn out of which $ 2.5 bn is to be sourced through a Eurobond issuance .
“The $ 2.5 bn proposed Eurobond will be used to finance critical road and rail projects included in the 2017 Appropriation Act .
In his presentation , the Minister of Transportation , Rotimi Amaechi, said Nigeria would borrow more to finance ongoing rail projects .
According to him , the country needs $36 bn to complete the projects .
He said , “ What is in this (2017 ) budget that we are asking for now is Kano- Kaduna and Port Harcourt - Calabar , but the bank that is lending us money will prefer if we ask for Ibadan - Kano so that we can finish the whole stretch from Lagos to Kano .”
When asked which particular rail projects the loan would be used to finance , Amaechi said , “ It depends on what they do with the virement; it will affect a lot of the funding. This money we are asking for will fund the completion of the Itakpe- Warri line; that will be ready in June next year. It will also fund the Kano- Kaduna and Port - Harcourt - Calabar (rail lines ).”
He added, “ It means that we will still come back to ask for more funding for the Ibadan -Kaduna rail , even if we got this (the current request).

http://punchng.com/nigerians-may-repay-5-5bn-loan-for-30-years-says-fg/

the entire story goes "ˢᵏʳʳʳᵃ ᵖᵃᵖ ᵖᵃᵖ ᵏᵃ ᵏᵃ ᵏᵃ ˢᵏᶦᵇᶦᵏᶦ ᵖᵃᵖ ᵖᵃᵖ ᵃᶰᵈ ᵃ ᵖᵘ ᵖᵘ ᵈʳʳʳʳ ᵇᵒᵒᵐ⋅ ˢᴷᴱᴬᴬᴬᴬ ᵈᵘ ᵈᵘ ᵏᵘ ᵏᵘ ᵖᵒᵒᵐ ᵖᵒᵒᵐ⋅ ᵖᵒᵒᵐ ᵖ…"
which way Nigeria?

APC wants to eat up the future of this great country

Imagine! So shameless of of a party that came to power on a false mantra of doing things right.APC have simply mortgaged the future of Nigeria.It's time men of sound and good conscience rise up and resist this worst catastrophic phenomenon that have ever befell this country.

biacan:
APC wants to eat up the future of this great country

They have done that already.You didn't grasped what the otondo finance minister just said?

Where will all the loan collectors be in 30 year's time?


Answer the question and tell us if this government is not mortgaging the future of our unborn generations, if Nigeria still exists then.

Scam government, why is buhari still looking for 5.5bn$ loan when Baru is hiding 26bn$ in NNPC contract

Paperwhite:
Imagine! So shameless of of a party that came to power on a false mantra of doing things right.APC have simply mortgaged the future of Nigeria.It's time men of sound and good conscience rise up and resist this worst catastrophic phenomenon that have ever befell this country.

It is well.

Paperwhite:
They have done that already.You didn't grasped what the otondo finance minister just said?

That one her case is completely out of the country

If Nigerians do not kill APC, APC will kill Nigeria.

APC and Buhari came only to loot Nigeria dry, Kill Nigerians and Destroy Nigeria dazzol..




Tonda faya somebody

dannytoe:
Scam government, why is buhari still looking for 5.5bn$ loan when Baru is hiding 26bn$ in NNPC contract

Buhary means FRAUD in Hausa language.

Stinking body odor of kworuption.

This man is just an old thief who has no atom of shame on his face or any conscience

It only becomes problem when the loan is not used for wealth creating capital project and Buhari has never done well in capital projects all his life

Even minster of money acts in proxy

What happened to the recovered loot?

What happened to the meaning money gotten subsidy removal?

What happened to the TSAs?




Sarrki your Lord don use your future and that of your unborn kids play Lotto

BeeBeeOoh:
What happened to the recovered loot?

What happened to the meaning money gotten subsidy removal?

What happened to the TSAs?




Sarrki your Lord don use your future and that of your unborn kids play Lotto

Which recovered loot? The one you are happy Patience Jonathan is still sitting on or the one Diezani and her boyfriends spent on international oloshos?

BeeBeeOoh:
What happened to the recovered loot?

What happened to the meaning money gotten subsidy removal?

What happened to the TSAs?




Sarrki your Lord don use your future and that of your unborn kids play Lotto

High chief wailer

Been a while

Omo aba gbese ni ile; Orun oni wo wa ju.

Ovamboland:
Which recovered loot? The one you are happy Patience Jonathan is still sitting on or the one Diezani and her boyfriends spent on international oloshos?

So I am the buhari that told Nigerians that he and his goons has recovered trillions or abii billions of naira??




Mpi a gi okpo na-anya kitaa eeeeh

sarrki:
High chief wailer

Been a while

Oba of Zombies e don tey oh, why u no come dey login with your main account again nah?

BeeBeeOoh:
Oba of Zombies e don tey oh, why u no come dey login with your main account again nah?

Nah you sabi that one ooooo

I only have one acct

Kind of busy

Am a patriot

sarrki:
High chief wailer

Been a while

Sarrki, I saw you in Lagos recently and you were looking so tattered and dejected. What has happened to you? Is Liar Mohammed still accusing you of not defending this govt enough despite your BMC pay? I'm aware they are owning many months salary

Useless people

Rate of children dropping out of schools is alarming; yet you want to borrow about #2 trillion again and put unnecessary burden on the coming generations.

Some pre 80s kids have started mutering Buhari 2019 because of false propaganda from a conference at obodo Oyinbo..
God will save Nigeria.

Ovamboland:
Which recovered loot? The one you are happy Patience Jonathan is still sitting on or the one Diezani and her boyfriends spent on international oloshos?

Take them to court and proof

APC just shouting up and down without achieving any thing.

They are people without fear of God The Almighty.

They are not interested developing Nigeria.

Nigeria never had good leaders, Nigeria can never become a modern society.

juman:
APC just shouting up and down without achieving any thing.

They are people without fear of God The Almighty.

They are not interested developing Nigeria.

It highly embarrassing to see educated and first class intellectuals singing 2019 already. Working in a privileged places doesnt not translate to all Nigerians