FG Seeks $1bn Loan From World Bank

PHOTO: NIGERIAN ACTING PRESIDENT GOODLUCK JONATHAN.

ABUJA, April 21, (THEWILL) - The Federal Government intends to borrow the sum of $915 million (N137.3 billion) from the World Bank to fund the deficit in the 2010 budget.

Acting President Goodluck Jonathan today wrote to the National Assembly seeking its permission to secure the loan.

In the letter to the Speaker of the House of Representatives Dimeji Bankole, Jonathan explained that the nation needs the money to take care of infrastructural projects needed for rapid development in the country.

The National Assembly last month passed a N4.6 trillion budget with a deficit of N1.3 trillion expected to be financed by external and internal borrowings and other projected extra budgetary revenue.

The Acting President in the letter entitled “Summary of 2010 External Borrowing Plan of Government”, explained that the fund will be used for developmental projects including Urban Water and Transport, Human Capacity Development and Power Infrastructure projects across the country.

The letter which was read on the floor of the House reads in part; "The World Bank Portfolio of the facilities totaling $915 million out of which $179 million would be drawn in fiscal 2010, is of particular essence as it would be deployed to Urban Water and Transport, Human Capacity Development and Power infrastructure projects across the country."

He urged the National Assembly to "note that Nigeria is in dire need to fund the huge infrastructure deficit critical to rapid development and the highly concessionary credit facilities offered Multilateral Agencies to which Nigeria belongs and commits substantial resources as affiliation fees has been identified as an inevitable source to compliment the budgetary allocations as appropriate."

Jonathan prayed the legislature to consider the borrowing plan and facilitate immediate legislative action on the matter in line with due process regulations.

The Acting President will sign the 2010 budget into law tomorrow (Thursday) after he reached a deal with the leadership of the Assembly on various grey areas, which delayed his assent to the budget.