Nigeria borrows $100m from Indian Export Bank


The Federal Executive Council (FEC) on Wednesday approved $100 million loan from the Indian Import- Export Bank for Cross Rivers, Enugu and Kaduna states.

The Minister of State for Finance, Yerima Ngama disclosed this to State House correspondents at the end of FEC meeting presided over by Vice President Namadi Sambo.

The Minister said the $100 million facility will be taken by the federal government and lent to the three states. The facility will attract concessionary rate of two per cent interest rate and will be repaid over a ten year period with three years moratorium, but with a commitment charge of 0.5 per cent of undrawn balance and 0.5 per cent for service charge.

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On the disbursement of the loan, Ngama said $30 million will go to Cross Rivers state. The State is expected to invest the fund in the completion of its independent Power project.

Enugu state government will get $40 million which is expected to be spent on electrification of 96 communities, supply and commissioning of 33KVA and four 15KVA lines and the distribution of transformers and other accessories to the 96 communities in the three Senatorial zones of the state.

He added that $30 million will be lent to Kaduna state government to augment the resources needed for the construction of 70 Kilometers transmission line from the Gurara Dam to Kaduna industrial area and the construction of 132/ 33KVA substation power supply to kaduna industrial area. Also, part of the fund will be used by the state government to construct solar electricity project in 50 communities.

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