Pipeline Projects: Senate demands rationale for $7.9bn Foreign Loans

The Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, and several state governors represented by their state Finance Commissioners appeared before the Senate to defend the $7.9 billion foreign loans sought from the Exim Bank of China, Islamic Bank, African Development Bank (AfDB) and the French Development Bank (AFD).

The project is part of Federal Government’s proposed pipeline projects under the Medium Term 2012 to 2014 External Borrowing Plans, which is before the Senate Committee on Foreign Loans and Debt.

Okonjo-Iweala, who was represented by the Minister of State for Finance, Mr. Yerima Ngama, had earlier sent the proposed pipeline projects foreign borrowing plan to the upper chamber, which had scaled through several deliberations and readings before it was transmitted to the various committees for final scrutiny.

The breakdown of the loans revealed that all states in the country applied for the loan of about $3.39 billion, while the Federal Government applied for $4.8 billion. Continuation of Eurobond Issuance $1 billion, Diaspora bond$0.1 billion putting the loan of the loan at $9. 005.69 billion.