Osinbajo writes reps over $1.28 billion borrowing plan

ACTING President, Professor Yemi Osinbajo has requested the National Assembly to include the sum of $1.28 billion ‎as part of Federal Government borrowing plan.

The Acting President in a correspondence addressed to the Speaker, Hon Yakubu Dogara dated 16th May, 2017 entitled “request for inclusion of Development Bank of Nigeria and Fund for Agricultural Finance in Nigeria into the 2016-2018 external borrowing plans as addendum”, asked for express approval of the request.

‎The letter marked, SH/Ag President/House/02/5 noted that, “the facility in the sum of US 1.28 billion appeared to be inadvertently omitted in the 2014-2016 external borrowing plan approved by National Assembly”.

According to the letter read on the floor of the House, Osinbajo said, “I write in reference to my earlier letter requesting for the consideration and approval of the House for the 2016-2018 external borrowing (rolling) plan and to forward herewith two more important under listed items for inclusion into the said borrowing plan as addendum a. Development Bank of Nigeria, DBN, b. Fund for Agricultural Finance in Nigeria, (FAFIN-II).

“The Development Bank of Nigeria, DBN is a Multi-donor supported bank approved under the previous administration with the financing agreements executed on 25th February, 2015.

“The Bank is being supported by the World Bank Group, African Development Bank, KfW Development of Germany and French Development Agency in the sums of $500 milion, $450 million, $200 million and $130 million respectively,” the Acting President’s letter said.

To this end, the letter posited that, “the bank is ready to commence operation and the donors are also ready to commence disbursement consequent upon National Assembly approval of the borrowing”.

Furthermore, the Acting President maintained that, “Fund for Agricultural Finance in Nigeria, FAFIN-II is being supported by KfW Development Bank of Germany in the sum of 9 million euro. The first phase of (i.e FAFIN-I) was in the 10.5 million euro and the financing agreement was executed on 3rd October 2013.

“It is an investment facility in agricultural financing. The first tranche of FAFIN-I has been fully disbursed and the donor is ready to provide another tranche of 9 million euro for FAFIN-II. The second tranche is for the consolidation of the gains in the investment of the first tranche.

“In view of the importance attached to these two projects by our administration, it has become imperative to seek for your usual understanding and kind consideration for the inclusion of the DBN and FAFIN-II into the 2016-2018 external borrowing plan as addendum,” the letter concluded.