Leadership (Abuja)
Justus Nduwugwe
10 November 2008
Abuja — The World Bank Group has proposed to assist Nigeria meet its infrastructure challenge, by offering a loan facility of $1 billion every year, totaling $3 billion (about N351 billion) from 2009 to 2011, under its International Development Assistance (IDA).
The Sustainable Development Sector Manager of the World Bank Office in Nigeria, Simeon Ehui, made this known at the weekend, when 15 foreign journalists and alumni of the International Institute for Journalism (IIJ) led by the head of the Institute, Ms. Astrid Kohl visited the bank on a fact-finding mission.
Mr. Ehui explained that Nigeria was eligible to receive the $3 billion to support development projects and eradicate poverty following noticeable improvement in the country's economy.
In his words, "The $3 billion for three years is concessionary loan with zero interest rate. It will not add any burden to Nigeria. The loan has been offered to Nigeria because of the massive improvement in the economy".
Apart from Mr. Ehui, who represented the Country Director of the World bank, Mr. Onno Ruhl, the meeting was also attended by the Chief Economist of the World Bank Office in Nigeria, Mr. Volker Treichel and the Senior Communications Officer, Mr. Tohomdet Obadiah.
Furthermore, he revealed that the proposed loan was tied to several developmental projects, including education, health, roads, and agriculture, that it would greatly assist the country to reduce poverty and improve living standards of the people.
Usually, world bank loans are interest free but attract service charges and non-utilisation fee of 0.5 and 0.75 per cent, respectively, with up to 35 to 40 years repayment period, including 10 years moratorium.
The world bank official confirmed Nigeria as the banks' largest portfolio in Africa, with a total of over $2.5 billion in 23 on-going projects ranging from agriculture, health, communications, roads, power and water, among others.
According to Mr. Ehui, "As at 1994, there was no commitment by the bank in Nigeria , but the world bank's commitment in Nigeria has grown since 1999 to $2.2 billion in 2006 and over $2.5 billion currently."
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