Federal Govt. approves N40billion loan for Lagos State
Maku made the disclosure on Wednesday in Abuja when he briefed State House correspondents on the outcome of the weekly Federal Executive Council (FEC) meeting, presided over by President Goodluck Jonathan.
He said the approval followed a memo brought to the Council by Dr Ngozi Okonjo-Iweala, the Coordinating Minister of the Economy and Minister of Finance, seeking approval to obtain additional credit facility from the International Development Association (IDA).
According to him, the credit facility will be in support of the Second Lagos State Development Policy Operation.
The project covers the construction of a 27km light rail, construction of schools and the construction of Adiyan Mini Water Works to provide two million gallons of water per day.
“Council approved that the Ministry of Finance obtained additional credit facility of 200 million dollars from IDA in support of the second Lagos State Development Operation.According to Maku, the loan has a 0.5 per cent commitment charge, 0.75 per cent service charge, an interest rate of 1.25 per cent per annum, 25 years repayment period and a moratorium period of five years.
“The Council also approved an additional 42.3 million dollars as additional financing for the Lagos-Epe Secondary Education Project.
“Council further approved that the coordinating minister for the economy should execute the financing agreement on behalf of the Federal Government.
“The Council then directed the Attorney-General of the Federation and Minister of Justice, Mohammed Adoke, to issue the legal opinion required to render the credit effective.”
Why is the federal government trying to take commendation for this? the loan is from IDA for crying out loud.
ReplyDeleteLagos State is taking a loan to finance its ongoing projects from IDA, The loan is only being ratified by the FG as the procedure demands by the lending body, Lagos will still have to pay back their own debts like every other State Governments.
The procedure demands that the Central Governments ratify the loan because no Local or State Government can go and borrow as they like and spend it on Private Jets and Mansions being occupied by Lizards and Abokis all over Maitama and Asokoro.
If the FG also needs to take any Loan facility, the 36 state Governors also have to make their input to decide whether we need such loan or not.
its not a big deal because the loan is from IDA and not fed govt
ReplyDelete