Daily Independent (Lagos)
David Agba
25 November 2008
Abuja — Nigeria on Monday obtained a World Bank loan of about $780 million (N90.48 billion) for three schemes: the Fadama Development Project (NFDP 111), Community and Social Development Project (CSDP), and the Federal Roads Development Project.
The loan is repayable in 40 years under the International Development Association (IDA), has zero interest, and a moratorium of 10 years.
It has a commitment charge of not more than 50 per cent per annum on undisbursed amount with a service charge of 0.75 per cent per annum on amount withdrawn.
Finance Minister, Shamsudeen Usman, explained at the signing ceremony in Abuja that the country is contracting concessional funding because it fits into its borrowing policy.
He said Nigeria's total exposure to World Bank lending is $3.5 billion, covering 33 projects.
Usman said: "I would want to place on record the invaluable contribution of the robust policy advice we have received from the World Bank and the enhanced IDA allocation to Nigeria, which is reflected in the quantum of projects in Nigeria portfolio, which increased from 18, with a total value of $1.2 billion in 2005 to 33, with a total value of $3.5 billion to date.
"The projects are spread across sectors such as Agriculture, Energy, Transport, Water and Sanitation, Health, Capacity Building and Governance towards poverty reduction in Nigeria.
"The objective of the Community and Social Development Project (CSDP) is to increase access by poor people to improved social and physical infrastructure and service.
"The project will support the empowerment of communities to develop, implement and monitor social infrastructure projects (public and common goods), including natural resources management interventions and social risk management (safety nets)."
The Federal Roads Development Project aims to reduce travel time and vehicle operating costs as well as assist the government to maintain federal roads.
World Bank Country Director for Nigeria, Onno Ruhl, pledged the bank's readiness to partner with Nigeria on its poverty reduction programme.
He said he has visited Kaduna, Niger, Benue and Cross River States where there is impressive progress on projects.
Unlike in the past, he added, local communities now choose their projects and are committed to their execution for optimal benefits.
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