Leadership (Abuja)
Philip Nyam
12 November 2008
Abuja — The House of Representatives will today debate the planned/ decision of the federal government to obtain a $3 billion World Bank loan for the provision of infrastructure and eradication of poverty in the country.
Sustainable Development Sector Manager of the World Bank in Nigeria, Mr. Simeon Ehui, through the International Development Assistance (IDA) had, last week, announced a loan facility of $3 billion to Nigeria as concessionary loan with zero interest to be drawn in 2009 through 2011.
The decision to debate the loan arose following a motion sponsored by the Chairman, House Committee on Information, Hon. Dino Melaye, as a matter of urgent national importance, which members unanimously agreed should be debated today.
Hon. Dino, in his argument deposed that Nigeria, having just been forgiven huge amount of debt by the Paris Club, would be wrong to start borrowing again.
According to him, such loan, especially from the World Band, had, in the past, not been spent on projects that have direct impact on the people of Nigeria and cautioned that it would not be healthy to go into such debt again.
His plea that the motion be taken and debated on Wednesday Tuesday, November 12, 2008 was unanimously agreed to by majority of members at plenary and the Deputy Speaker, Alhaji Bayero Nafada, who presided directed that it be scheduled accordingly.
According to some of the conditions of the loan, priority attention should be paid to development projects such as education, health, roads and agriculture because of their importance.
The loan is interest free, it attracts a service charge 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 in the entire transaction.
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