From: Kemi Yesufu, Abuja
Acting President Yemi Osinbajo has requested for the approval of the House of Representatives for the $1.28 billion World Bank loan for the Development Bank of Nigeria (DBN).
Osinbajo’s letter dated 16th May, 2017 and titled: ‘Request for inclusion of Development Bank of Nigeria and fund for agricultural finance in Nigeria into the 2016-2018 external borrowing plans as addendum,’ which was received on the 18th May, 2017, was read by Speaker Yakubu Dogara during Tuesday’s plenary.
The letter read in part: “Mr. Speaker, may wish to know that the Development Bank of Nigeria (DBN) is a multi-donor supported Bank approved under the previous administration with the financing agreements executed on 25th February, 2015.
“However, the facility in the sum of $1.28 billion appeared to be inadvertently omitted in the 2014-2016 External Borrowing Plan approved by the National Assembly.
“The Bank is being supported by the World Bank Group, African Development Bank, KfW Development of Germany and French Development Agency in the sums of $500 million, $450 million, $200 million and $130 million respectively.
“The Bank is ready to commence operation and the donors are also ready to commence disbursement consequent upon National Assembly approval of the borrowing.
“Furthermore, funds for agricultural finance in Nigeria (FAFIN-II) is being supported by KfW Development Bank of Germany in the sum of 9 million euro.
“The first phase of (i.e FAFIN-I) was in the 10.5 million euro and the financing agreement was executed on 3rd October, 2013.
“It is an investment facility in agricultural financing. The first tranche of FAFIN-I has been fully disburses and the donor is ready to provide another tranche of 9 million euro for FAFIN-II. The second tranche is for the consolidation of the gains in the investment of the first tranche.
“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”.