₦airaland Forum

The Federal Government on Tuesday explained why it decided to approach the China-Exim Bank for a $17bn loan request.

It said other lending institutions like the World Bank and the African Development Bank were not showing much interest when Nigeria approached them during recession.

The Minister of Finance,  Zainab Ahmed,  stated this  in the Senate while defending the decision of the regime of the President,  Major General Muhammadu Buhari ( retd. ), to borrow $29.96bn loan to fund critical infrastructure across the country.

She explained that the 8th National Assembly had approved about $6bn for the Federal Government out of the $29.96bn loan, leaving a balance of $22.8bn.

Ahmed told the Senate Committee on Local and Foreign loans that the Federal Government and some state governments were jointly requesting the loans from various lending institutions.

She said 70 per cent of the loan, which is about $17bn, would come from the China-Exim Bank while others would be sourced from other lending institutions such as the Islamic Development Bank.

The minister maintained that the country had no issue with its current debt profile but noted that its dwindling revenue could not fund the various projects that were expected to have meaningful impact on the lives of Nigerians.

She said, “The funds ($22.8bn) will be channelled to the funding of infrastructure, which will enhance the productivity of our economy.

“Other projects are in healthcare and education. It also includes projects for the rehabilitation of the North- East geopolitical zone, which has been ravaged by insurgency.

“Others are the Mambila Hydro Power project ($4.9bn), Lagos-Kano  modernisation rail project ($4.1bn),  the Development Finance project loan being provided by a consortium of World Bank and African Development Bank agencies ($1.28bn).

“Above all, the loan will help us to improve our electricity supply,  reduce poverty, create jobs, ensure access to finance,  agricultural productivity, guarantee food security, achieve high school enrolment, provide clean potable water, rehabilitate major roads and develop the mining industry.”

On why the  country is seeking 70 per cent of the foreign loan from China, the minister said, “it is meant to make funds available to our own development 
institutions so that they can give out loans because access to finance has been difficult for the SMEs.”

On the debt profile of the country,  the minister said, “ The 2016-2018 external borrowing plan is both for the Federal Government and the states. So, some states would be responsible for the payment of some of the loans.”

On the sustainability of the nation’s debt portfolio, the minister said Nigeria’s current portfolio ceiling as set by the Fiscal Responsibility Act was 25 per cent of total debt to GDP.He said, “The ratio for December 2018 was 19.09 per cent but it reduced to 18.9 per cent by the middle of 2019.

“The debt service to revenue ratio is however high and it provides us strong justification for us to drive our revenue.For 2017, the ratio was 57 per cent and 51 per cent in 2018. The minister said the nation’s debt level was low compared to other countries like the USA, the United Kingdom and Canada.


The Chief of Staff to the Kaduna State Governor,  Mohammed Abdullahi,  defended the state’s $305m loan request before the panel.

A representative of the Katsina State Government, Yakubu Danja, said the state planned to source $100m out of $110m  from the Islamic Development Bank.

He said the state would enjoy between 20 to 50 per cent grants and that projects to be executed would cover the entire local government areas of the state. He also said that the loan was interest-free.

Kogi State Government’s Commissioner for Finance, Budget and Planning, Mr Ashiru Idris, said the $100m that the state was requesting would be used to develop infrastructure to encourage investors and diversify the
economy.

https://punchng.com/fg-approaches-china-for-17bn-loans/amp/?__twitter_impression=true

Lalasticlala

no wonder

Again? Why always China.
But wait Oo, is China this rich?

China will soon colonize recolonize Nigeria

There no justification anywhere that these govt is not corrupt! keep borrowing with nothing to show for it, and i hear clueless Zainab Ahmed comparing Nigeria debt profile with the UK, USA, CANADA. Third world country want to do what first world country are doing? Their debts profile are visible with lots of achivement and infrastrustural developments. What has Nigeria debt done for Nigerians? bunch of thieves

It said other lending institutions like the World Bank and the African Development Bank were not showing much interest when Nigeria approached them during recession.

So you thinks all these global financial bodies are as daft as you're to continue to enhance our debt pillage when there is no guarantee of how you're going to pay back? Remember they've all warned Nigeria against more borrowing but recession is still a byword to the government.Debt servicing is not debt payment.

The minister maintained that the country had no issue with its current debt profile but noted that its dwindling revenue could not fund the various projects that were expected to have meaningful impact on the lives of Nigerians

Global financial bodies are seriously disturbed about Nigeria's debt profile while our govt is exuding stupid confidence in an economy that is import dependent, with worsening forex flight, lost of investor's confidence and indiscriminate taxation that is crippling SMEs

Meanwhile, what is still happening with the so called staggering revenue generation or turnovers by govt agencies that revenue is now being said to be dwindling? This regime can lie & contradict itself.

On the cross, jesus said "IT'S FINISHED"

Citytrend:
Again? Why always China.
But wait Oo, is China this rich?

China is extremely rich. China is the richest country on the planet. This is not about GDP crap, it is about revenue and cash at govt disposal. China owns 4 out of 5 world's top banks. USA is currently owning China about $10tn

The problem with APC is they think we are all zombies like their supporters.

Nbote:
China will soon colonize recolonize Nigeria

Is it not better than world bank

Racoon:
So you thinks all these global financial bodies are as daft as you're to continue to enhance our debt pillage when there is no guarantee of how you're going to pay back? Remember they've all warned Nigeria against more borrowing but recession is still a byword to the government.Debt servicing is not debt payment.

Must u insult

If u say govt shouldnt have access to loan, where do u expect them to fund developmental projects from

Was buhari the messiah Fr. Mbaka saw or we should expect another messiah?

This man is everywhere from banks to pension to India to China borrowing money like the proverbial dead beat uncle . What were Nigerians expecting when they voted a man that confessed that he has never known how to make money but rather borrowed to sustain his family and even borrowed money to buy his nomination form

The loan is a matter of necessity, I can see people above started criticising the government without knowing the usefulness of the loan.
Most of the developed countries used loan to developed their country

[/quote][quote author=Racoon post=86395260]Global financial bodies are seriously disturbed about Nigeria's debt profile while our govt is exuding stupid confidence in an economy that is import dependent, with worsening forex flight, lost of investor's confidence and indiscriminate taxation that is crippling SMEs

Meanwhile, what is still happening with the so called staggering revenue generation or turnovers by government agencies the revenue is said to be dwindling? This regime can lie & contradict itself.

Most of the turnovers revenues are not enough to meet up with our infrastructure, we need infrastructure to woe serious investors

Nigeria is that friend that will still ask you for money despite the fact that you are facing difficulties

aremuforlife:
The loan is a matter of necessity, I can see people above started criticising the government without knowing the usefulness of the loan.
Most of the developed countries used loan to developed their country

Please tell us the usefulness of a loan that will all go into recurrent expenditure and paying for the lifestyle of useless civil servants and govt officials ... Are you aware 80% of our budget is used to service reccurent expenditure. Nations borrow to invest in anticipation of successful returns not borrow to pay salary , loot and private jet trips .

Buhari destiny is to bankrupt and wreck the country...

By the time Buhari is through with Nigeria

The nation will be on JiJi..

aremuforlife:
The loan is a matter of necessity, I can see people above started criticising the government without knowing the usefulness of the loan.
Most of the developed countries used loan to developed their country

Must be a Yoruba Muslim as usual...

Buhari and Yusuf his son is mortgaging your future

GamalNasser:
Please tell us the usefulness of a loan that will all go into recurrent expenditure and paying for the lifestyle of useless civil servants and govt officials ... Are you aware 80% of our budget is used to service reccurent expenditure. Nations borrow to invest in anticipation of successful returns not borrow to pay salary , loot and private jet trips .

The minister specifically stated that the loan will go towards providing and completing critical infrastructure.the abacha loot is clearly not enough for that.it is easier to pay salaries than carry out capital projects.this projects costs billions.if we do not borrow,we will only be able to pay salaries and do remedial work on few existing infrastructure.the only way is to strengthen our revenue sources by increasing taxes,vat,focusing on agric l,tourism and buhari is doing that.

[/quote][quote author=GamalNasser post=86397250]Please tell us the usefulness of a loan that will all go into recurrent expenditure and paying for the lifestyle of useless civil servants and govt officials ... Are you aware 80% of our budget is used to service reccurent expenditure. Nations borrow to invest in anticipation of successful returns not borrow to pay salary , loot and private jet trips .

You shou5have study what the loan is made for before attacking my opinion.
These is an infrastructural loan.
This is what should have been done before now, you are among this complaining about metro, term, good roads etc. Where do you think the government will get the money from.
I will be glad if you can come out with your own opinion on how to finance this infrastructure.
Thanks

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A borrower will always be a borrower.

Buhari will one day borrow from LAPO.

Nigerians voted a man who borrowed to buy his nomination forms in 2015 nd repeated same in 2019.
How do u expect him not to borrow to govern the country.

[/quote][quote author=ZombieHUNT post=86397339]Must be a Yoruba Muslim as usual...

Buhari and Yusuf his son is mortgaging your future

Humanity before religion, you don't need to attack someone religion for stating his/her opinion.
Moreover, I am a Christian and proud to be Yoruba man, thanks for your complement

aremuforlife:
You shou5have study what the loan is made for before attacking my opinion.
These is an infrastructural loan.
This is what should have been done before now, you are among this complaining about metro, term, good roads etc. Where do you think the government will get the money from.
I will be glad if you can come out with your own opinion on how to finance this infrastructure.
Thanks

Lies we all know the loan is meant the bridge the heavy Budget deficit , they know nobody will give them loan is they say it's for their useless reccurent expenditure ..see you know Buhari is useless and has nothing to offer

aremuforlife:
Most of the turnovers revenues are not enough to meet up with our infrastructure, we need infrastructure to woe woo serious investors

Oh revenue turnups are no longer the problem? So why was the regime glorifying itself over this development? They lied that FIRS have done exceedingly well in 2018 only to turn around the next year to sack Bab Fowler for failure to meet projected revenue drive among the alleged high revenue generation by many MDAs.

Thought the zombies were long hallucinating that Nigeria is the number one investors destination for doing business while direct foreign investment(DFI) is not commensurate with realities on ground? Of course all nah wash.

GamalNasser:
This man is everywhere from banks to pension to India to China borrowing money like the proverbial dead beat uncle . What were Nigerians expecting when they voted a man that confessed that he has never known how to make money but rather borrowed to sustain his family and even borrowed money to buy his nomination form

This is the economy illiterate zombies expect to take Nigeria to "next level"?

Shebi APC said PDP handed over Nigeria like a faulty car to them abi.

I see them handing over a faulty wheel barrow in pieces come 2023.

With this news...



If Jonathan was a thief and incompetent, what do we call buhari

Abeg make dem give me my share of dis country before the whole thing finish o.

Again!!!