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President Jonathan Seeks MTEF Amendment for Additional $200 million Debt

By on November 21, 2012

President Jonathan Presents Budget at the National Assembly

President Goodluck Jonathan has requested for the amendment of the $7.905 billion 2012-2014 Medium Term External Borrowing Plan.

The president wrote to the National Assembly to that effect, saying the plan should include $200m.

The letter was read on the floor of the Senate on Tuesday, the President said the plan would now include a $200m water supply project for Rivers State.

He said the additional $200m for the water supply project will be funded by the African Development Bank.

The President said, “Second, the Federal Government is currently developing a low-income housing finance facility to support the provision of affordable homes for Nigerians.

“This scheme will be financed using a $300m credit facility from the World Bank. We would like to swap this new $300m facility with the proposed guarantees for the power sector in the draft borrowing plan, thereby ensuring that we do not increase the overall size of loans proposed in the external borrowing plan.”

President Jonathan informed the Senate in the same letter that the government would issue a $1bn Euro bond in continuation of the programme initiated by the administration of President Umaru Yar’Adua as well as a $100m Diaspora bond.

Earlier the President submitted to the National Assembly an annual borrowing of $2.4bn for cumulative facilities offered for the completion of pipeline projects.

According to the $7.9bn borrowing plan, the Islamic Development Bank will provide $672.85m, the French Development Agency, $56.61m. The World Bank will provide $2.975bn, The EXIM Bank of China $3bn, as well as the African Development Bank, $731.23m.