Daily Independent (Lagos)
Rotimi Durojaiye
10 November 2008
Lagos — Nigeria has been offered a $3 billion (N351 billion) loan by the World Bank to upgrade infrastructure, a senior official of the bank, Simeon Ehui, disclosed at the weekend.
The facility, spanning between 2009 and 2011, is under the International Development Assistance (IDA).
Ehui, the bank's Sustainable Development Sector Manager in Nigeria, said in Abuja that it is offering $1 billion each year for three years.
He made the disclosure during a finding visit to the bank by 15 foreign journalists and alumni of the International Institute for Journalism (IIJ), led by the Head of the Institute, Astrid Kohl.
The meeting was also attended by the World Bank Chief Economist in Nigeria, Volker Treichel, and Senior Communications Officer, Obadiah Tomohdet.
Ehui, who represented World Bank Country Director, Onno Ruhl, explained that "the $3 billion is a concessionary loan with zero interest rate. It will not add any burden to Nigeria. It has been offered to Nigeria because of the massive improvement in the economy."
The offer came on the heels of the disclosure by Minister of State for Finance, Remi Babalola, that the country requires about $100 billion to address critical infrastructural problems, including power.
Babalola, who was reading a communique at the end of the seventh session of the Honorary International Investor Council (HIIC) in Abuja, said foreign investment drive would be hampered if the infrastructure gap is not redressed.
Nigeria's annual budget averaged N2.3 trillion (about $19.7 billion) in the last five years. Its foreign debt has reduced from $35.916 billion by June 2005 to over $3.5 billion by June 2008.
The proposed loan is tied to projects such as education, health, roads, and agriculture, that would help improve living standards.
World Bank loans are interest free but attract service charge of 0.5 percent and non-utilisation of 0.75 per cent, with up to 35 to 40 years repayment period, including 10 years' moratorium.
Ehui confirmed Nigeria as the bank's largest portfolio in Africa, investing over $2.5 billion in 23 on-going projects spanning agriculture, health, communications, roads, power, and water.
"As at 1994, there was no commitment by the bank in Nigeria. But its commitment has grown since 1999 to $2.2 billion in 2006 and over $2.5 billion currently.
"The improvement is not by chance. It is as a result of improved governance and economic performance."
He also disclosed that World Bank has offered Africa a third seat on its executive board, bringing the total number of representatives on the board to 25 as against 24.
"The good news is that Africa now has an additional seat on the World Bank board. Which country or region will take the seat is not yet known. It is still being finalised."
Treichel, who acknowledged that a double digit growth rate is realisable by Nigeria, however, advised it to tackle the electricity problem as it generates less than its capacity of about 6,000 mega watts.
He noted that the global financial crisis is a blessing to Africa because the continent is isolated from the international market.
The World Bank supports Central Banks on the continent to undertake a comprehensive study of the global crisis and come out with antidotes.
"Bail out plan is a long term vision where you want to see the financial system; you don't just inject money into the system. It must be accompanied by structural measures."
The leader of the IIJ delegation, Kohl, praised the World Bank for its effort to eliminate poverty worldwide.
She disclosed that the delegation is in the country to participate in the fourth Germany Partnership with Africa, initiated in 2005 by German President, Horst Khler.
Her worlds: "The International Institute for Journalism (has been offering advanced training for print and news agency journalists from developing and transitional countries since 1964. In recent times, special courses for online journalists have been added to the training scheme.
"The courses aim at strengthening the professional skills of the journalists and offer a platform to exchange experiences and ideas. About 5,000 journalists have participated in courses conducted by the IIJ, either in Germany or abroad.
"A high proportion of these participants now hold senior positions in newspapers throughout the world."
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