Osinbajo seeks National Assembly’s nod for $1.28bn in external borrowing plan

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The Acting President Yemi Osinbajo has sought approval of the National Assembly to include the Development Bank of Nigeria (DBN) and Fund for Agricultural Finance in Nigeria (FAFIN-II) into the $1.28 billion 2016-2018 external borrowing plan.

The facility, according to Osinbajo, was omitted in the 2014-2016 external borrowing plan approved by the National Assembly.

In a letter addressed to the Speaker of the House of Representatives, Yakubu Dogara and dated May 16, 2017, the Acting President said based on the importance of the projects, there was need to seek the inclusion.

He said: “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.”

In the two-page letter, Osinbajo noted that DBN was a multi-donor supported bank being supported by the World Bank, KfW Development of Germany and French Development Agency in the sum of $500 million, $450 million and $130 million, respectively, adding that the donors were ready to release funds to the DBN following the approval of the legislature.

Osinbajo said while the FAFIN-II was being supported by KfW Development Bank of Germany in the sum of €9 million, the first phase of FAFIN-1 was in the €10.5 million, whose financing agreement was executed on October 3, 2013.

He said the second tranche of €9 million would consolidate on the gains in the investment of the first tranche. In another development, the Acting President yesterday said the Federal Government would revamp Kano groundnut pyramid in a bid to sustain economic growth in the state.

Osinbajo, who spoke at the second Kano Economic and Investment Summit, said the Federal Government had also set aside special intervention in 2017 budget for free trade in Kano part of which shall be deployed to reactivate the moribund industries in the state.

The Acting President, represented by Minister of Budget and National Planning, Udoma Udo Udoma, said the Federal Government would soon place embargo on importation of food crops that can grow in the country.

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