President Muhammadu Buhari has written to the House of Representatives requesting approval for a 2016-2018 External Borrowing (Rolling) Plan. In the letter read by the Speaker of the House of Representatives, Hon Yakubu Dogara (APC: Bauchi) at the plenary session of Wednesday, 25th October 2016, the President stated that an approval of his request would ensure prompt implementation of projects under the borrowing plan with special emphasis on Infrastructure, Agriculture, Health, Education, Water Supply, Growth and Employment Generation, Poverty Reduction through Social Safety Net programmes, Governance and Financial Management Reforms among others.
According to the President’s letter, the total cost of implementing these projects is $29.960billion consisting of a Projects and Programme loan of $11.274billion, Special National Infrastructure Projects of $10.686 billion, Euro Bonds of $4.5billion and Federal Government Budget Support of $3.5billion. The letter also revealed that the projects and programmes were selected after positive technical economic evaluation and presumed contribution to the socio-economic development of the country. The projects will be implemented across the 36 States of the Federation and the Federal Capital Territory (FCT).
In addition, the President used the medium to explain that it was necessary to resort to external borrowing to fund the financial gap required to address the huge infrastructural deficit in the country such as power, railway, road projects and assured lawmakers of its resolve to implement the projects in a financially sustainable manner.
The President also admitted in his letter that the World Bank had provided the sum of $575 million for the purpose of reconstructing and rehabilitating the North East and that the said sum which was outside the 2016-2018 External Borrowing Plan had been earmarked for urgent implementation in the region in the following manner:
- Polio Eradication support and routine immunization project- $125million
- Community and Social Development Project- $75million
- Nigeria States Health Programme Investment project- $125million
- State Education Programme Investment Project- $100million
- Nigeria Youth Employment and Social Support Project- $100million
- Fadama III Project- $50million
The President therefore urged Members to immediately approve the $575 million grant by the World Bank to enable its immediate disbursement before further consideration and authorization of the 2016-2018 borrowing plan.
