TheNigerianVoice Online Radio Center

FG okays $242.2m IDA loans for Lagos infrastructure, education

By The Citizen
Listen to article

The Federal Government has approved a N40bn loan facility for Lagos State Government for the development of infrastructure and education in the state, the Minister of Information, Mr Labaran Maku, told journalists in Abuja.

According to Maku while brief State House correspondents at the end of the weekly Federal Executive Council meeting, presided over by President Goodluck Jonathan, the approval followed a memo brought to the Council by Dr Ngozi Okonjo-Iweala, the Coordinating Minister of the Economy and Minister of Finance, seeking approval to obtain additional credit facility from the International Development Association.

He said the credit facility will be in support of the Second Lagos State Development Policy Operation.

'Council approved that the Ministry of Finance obtain additional credit facility of $200m from IDA in support of the second Lagos State Development Operation.

'The Council also approved an additional $42.3m as additional financing for the Lagos-Epe Secondary Education Project.

'Council further approved that the coordinating minister for the economy should execute the financing agreement on behalf of the Federal Government.

'The Council then directed the Attorney-General of the Federation and Minister of Justice, Mr Mohammed Adoke, to issue the legal opinion required to render the credit effective,' he said.

According to Maku, the loan has a 0.5 per cent commitment charge, 0.75 per cent service charge, an interest rate of 1.25 per cent per annum, 25 years repayment period and a moratorium period of five years.

The minister, who briefed correspondents alongside the Ministers of Federal Capital Territory, Sen. Bala Mohammed and Transport, Sen. Idris Umar, said the Council also approved the award of contract for operation, maintenance and training staff for Wupa Basin Sewage Treatment Plant.

He said the plant would gulp N6bn, with a completion period of 20 months.