Buhari seeks national assemblys approval for 6 4 billion china world bank loans
A significant development in Nigeria's economic landscape!
According to reports, President Muhammadu Buhari has sought the approval of the National Assembly for six loan agreements totaling $4.4 billion (approximately N1.64 trillion) with the China Exim Bank and the World Bank.
Here are the details of the loan agreements:
- Railway Development Loan: $1.5 billion (approximately N550 billion) from the China Exim Bank to finance the construction of the Lagos-Kano standard gauge railway project.
- Ajaokuta-Kaduna-Kano Railway Modernization Project: $1.2 billion (approximately N440 billion) from the China Exim Bank to upgrade the existing railway line.
- Niger Delta Development Loan: $1.1 billion (approximately N400 billion) from the China Exim Bank to finance projects aimed at developing the Niger Delta region.
- Power Sector Recovery Programme Loan: $1 billion (approximately N360 billion) from the World Bank to support the power sector's recovery and reform efforts.
- Agricultural Development Loan: $500 million (approximately N180 billion) from the World Bank to finance agricultural projects and improve food security.
- Transportation Development Loan: $300 million (approximately N108 billion) from the World Bank to support the development of transportation infrastructure.
The loans are expected to be used to finance various infrastructure projects, including railways, roads, power, and agriculture, aimed at stimulating economic growth and development in Nigeria.
The National Assembly has been asked to approve the loan agreements, which will be repaid over a period of 15 to 20 years, with a 2-3 year grace period. The loans are expected to be disbursed in tranches, with the first tranche expected to be released once the National Assembly approves the agreements.
It's worth noting that the loan agreements are subject to the approval of the National Assembly, and the President has also sought the approval of the Federal Executive Council (FEC) for the loan agreements.
What do you think about these loan agreements? Do you think they will have a positive impact on Nigeria's economy?