Nigeria suspends $22.7bn loan plan
The
Minister of Finance, Budget and National Planning, Zainab Ahmed has announced
that the federal government has suspended its $22.7bn external borrowing plan
which drew controversy weeks ago.
Zainab
who made the announcement at the 2020 International Conference on the Nigerian
Commodities Market organized by the Securities and Exchange Commission (SEC) in
Abuja on Monday March 16, said the current realities in the global economic
landscape influenced the decision.
The
Minister disclosed that the federal government will continue to focus its
efforts on its plan to diversify the country’s economy and also watch the
market till the time is right for the loan.
She
said;
“The current market indices do not support
any external borrowings at the moment, despite that the parliament is still
doing its work on the borrowing plan.
“One arm of the parliament has completed
their work, and the other arm is still working. So, it is a process controlled
entirely by the parliament itself. We are waiting.
“The expenditures that are not critical
must be deferred to a later date when things become more normal.
“Several national plans, programmes and
projects have been directed at diversifying the production and revenue
structures of the economy."
Recall
that the loan which was to be used to fund the Nigeria Electricity Transmission
and Access Project Social Inclusion and Welfare Advancement project, renamed
National Social Safety Net Project, and the Economic Reforms and Governance
Project, renamed Fiscal Governance Project, will be sourced from the World
Bank, African Development Bank, Islamic Development Bank, Japan International
Cooperation Agency, German Development Bank, China-Exim Bank and the French
Development Agency.
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