14th January, 2016
Nigeria’s cabinet, the Federal Executive Council on Wednesday approved a World Bank of loan of $200 million for Lagos State.
Minister of Information and Culture, Alhaji Lai Mohammed and his Power, Works and Housing counterpart, Babatunde Fashola told journalists at the end of the cabinet meeting presided over by President Muhammadu Buhari that the loan was part of a $600 million loan granted by World Bank for roads and other infrastructural development projects in the state.
According to them, while the first batch of $200 million was approved in 2010, the batches that were supposed to follow were delayed by the last administration for political reasons.
“We just finished the Federal Executive Council meeting and the major item which will be of interest was the Council’s approval of the memo put forward by the Minister of Finance to obtain additional $200 million loan from International Development Association (IDA), which is a window of the World Bank in support of the Lagos State development policy operation.”
While speaking on the loan, Fashola said the delay has affected the conditions attached to the loans like the moratorium which has been reduced from 10 to five years and the tenor of payment.