Buhari Seeks NASS Approval For $200m Loan For Lagos
President Muhammadu Buhari has asked the House of Representatives to approve a loan request of $200 million from the World Bank for Lagos State.
The request was contained in a letter written by the President to the Speaker of the House, Rt. Hon. Yakubu Dogara, and read to members at plenary on Tuesday.
The loan, which is for a Development Policy Operation (DPOII) was earlier approved in 2010 by the World Bank and it is expected to be implemented in three tranches.
The letter added that the first tranche of the loan was approved by the National Assembly in the 2010 to 2012 Federal Government External Borrowing Plan and the second tranche was contained in the 2012 to 2014 Plan.
President Buhari also noted that the DPO-1 was successfully implemented by the Lagos State in 2014.
The letter reads in part: "Following the successful implementation as adjudged by the World Bank, the bank’s Board of Directors approved the second tranche of the DPO on April 29, 2015."
"The DPO-III was captured in the federal government external (Rolling) borrowing plan of 2014 to 2016 which was discussed with the National Assembly, but was not concluded.’’
The President therefore solicited the support of the lawmakers to facilitate the consideration and early approval of the Development Policy Operation II.
"This is to enable the state consolidate on the gains of the second tranche of the operation (DPO-II)," he said.
In the same vein, the President has also requested for approval for an increase in the amount to be raised through the diaspora bond from the international capital market.
This is in line with the federal government’s effort to mobilize capital to finance critical infrastructure in the country.
In a separate letter to the House, the President stated that the request was crucial in diversifying federal government’s funding source and to encourage Nigerians in the diaspora to contribute to the development of the economy.
He added that the reason for request to increase the issuance amount to $300 million was to meet the huge amount of capital needed to bridge the infrastructural gap, thereby supporting growth and development in the country.
The request was contained in a letter written by the President to the Speaker of the House, Rt. Hon. Yakubu Dogara, and read to members at plenary on Tuesday.
The loan, which is for a Development Policy Operation (DPOII) was earlier approved in 2010 by the World Bank and it is expected to be implemented in three tranches.
The letter added that the first tranche of the loan was approved by the National Assembly in the 2010 to 2012 Federal Government External Borrowing Plan and the second tranche was contained in the 2012 to 2014 Plan.
President Buhari also noted that the DPO-1 was successfully implemented by the Lagos State in 2014.
The letter reads in part: "Following the successful implementation as adjudged by the World Bank, the bank’s Board of Directors approved the second tranche of the DPO on April 29, 2015."
"The DPO-III was captured in the federal government external (Rolling) borrowing plan of 2014 to 2016 which was discussed with the National Assembly, but was not concluded.’’
The President therefore solicited the support of the lawmakers to facilitate the consideration and early approval of the Development Policy Operation II.
"This is to enable the state consolidate on the gains of the second tranche of the operation (DPO-II)," he said.
In the same vein, the President has also requested for approval for an increase in the amount to be raised through the diaspora bond from the international capital market.
This is in line with the federal government’s effort to mobilize capital to finance critical infrastructure in the country.
In a separate letter to the House, the President stated that the request was crucial in diversifying federal government’s funding source and to encourage Nigerians in the diaspora to contribute to the development of the economy.
He added that the reason for request to increase the issuance amount to $300 million was to meet the huge amount of capital needed to bridge the infrastructural gap, thereby supporting growth and development in the country.