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.
According to her, “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.”
She explained that other projects to be funded from the loan are “ 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,” she said “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.”
