The Federal Executive Council, FEC yesterday, approved external three-year rolling borrowing plan. According to Minister of Finance, Kemi Adeosun, the borrowing plan, which will be transmitted to the National Assembly for its approval, will be concessional loans with interest rates at 1.25 percent, with four to seven year moratorium, 20 years to pay.
The Minister disclosed that the borrowings would come from agencies such as the World Bank, African Development Bank, China EXIM Bank, and other development agencies like Japanese International Cooperation Agency (JICA) and Eurobonds.
The declaration followed on the heels of the submission by the National Bureau of Statistics that the economy was technically in a recession. But at the end of the Federal Executive Council Meeting presided over by President Muhammadu Buhari, the Minister of Finance, Mrs. Kemi Adeosun, admitted that though it was the worst possible economic season for Nigeria, the government was not confused about what to do in order to salvage the situation in the interest of Nigerians. Adeosun said, “It’s the worst possible time for us. Are we confused? Absolutely not. How are we going to get ourselves out of this recession? One, we must make sure that we diversify our economy.” She cited the case of the Ministry of Solid Minerals, which had already procured a World Bank loan of $150million to enable it to strengthen its capacity and generate revenue from the sector. Education Minister, Adamu Adamu, on his part, revealed that FEC approved contracts for the construction International House for the University of Ibadan (UI), which is a post-graduate hall, at the cost of N1.302 billion with a completion period of 44 weeks. Also approved was contract for the reconstruction of the University of Lagos (UNILAG.) new library at the cost of N1.935 billion.