The Federal Government on Tuesday explained why it decided to approach the China-Exim Bank for a $17bn loan request.
It said other lending institutions like the World Bank and the African Development Bank were not showing much interest when Nigeria approached them during recession.
Ahmed told the Senate Committee on Local and Foreign loans that the Federal Government and some state governments were jointly requesting the loans from various lending institutions. She said, “The funds will be channelled to the funding of infrastructure, which will enhance the productivity of our economy.
“Above all, the loan will help us to improve our electricity supply, reduce poverty, create jobs, ensure access to finance, agricultural productivity, guarantee food security, achieve high school enrolment, provide clean potable water, rehabilitate major roads and develop the mining industry.” On the sustainability of the nation’s debt portfolio, the minister said Nigeria’s current portfolio ceiling as set by the Fiscal Responsibility Act was 25 per cent of total debt to GDP.
The Chief of Staff to the Kaduna State Governor, Mohammed Abdullahi, defended the state’s $305m loan request before the panel.
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