Senate approves $266m World Bank loan for Niger State

Senate delegating on the report of the Committee on Local and Foreign Debts on the Niger State’s Development Policy Operations (DPO) Credit Facilities from World Bank and Islamic Development Bank by Senator Shehu Sani. Photo/Twitter/NGRSenate

The Senate has approved the sum of 266 million dollar as contained in the 2016 to 2018 External Borrowing Plan of President Muhammadu Buhari for Niger State Development Policy Operation (DPO).

This followed recommendation of the Senate Committee on Local and Foreign Debts.

The loan among other things, is aimed at stimulating internally generated revenue.

It is also aimed at developing critical infrastructure that will attract private investors to the state thereby increasing employment opportunities for residents and citizens.

Presenting the report, the Committee Chairman, Sen. Shehu Sani said that the fund for DPO from the World Bank was proposed to finance important programmes of Niger State Government.

He said “the World Bank Development Policy Operation (DPO) is a budget-support facility meant to finance budget gaps that governments often encounter in implementing their annual budgets.”

Sani said the committee in its finding, discovered that the credit facility had an attractive low financing data of 1.25 per cent interest; moratorium of five years and a 25 year maturity tenure.

“According to the latest Debt Management Office figures, Niger state has a total debt stock of $232.1 million.

“Approving the current loan request of $266 million for Niger state will bring its total debt stock to $498.1 million,” he said.

The Senate had in 2017, mandated the committee to consider the Niger State DPO as contained in the 2016-2018 approved external borrowing plan following its approval of the loans’ request for seven states.

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