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Nigerian Govt reveals number of years to repay $5.5b foreign loan

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The Nigerian Government has disclosed how long it might take in settling off the external loan it is planning to raise and for which it is seeking the approval from the National Assembly.

Recall that President Muhammadu Buhari had written to the Senate seeking approval of $5.5 billion for finance the 2017 Appropriation Bill and the Minister of Finance, Mrs. Kemi Adesina, had just revealed that it would take 5 to 30 years for the government to fully repay.

Justifying the need to borrow more, the minister said there are number of infrastructural projects that are ongoing and only with more borrowing would they not suffer setbacks

 

Represented by Patience Oniha, Director-General of Debt Management Office, the minister explained to the Senate Committee on Local and Foreign Debt on Thursday the long term justification of the borrowing.

Oniha said, “The figures you distinguished senators dished out are for various tenors, and we have approached the market to get the price for repayment which will take between 5 to 30 years.

 

“Although this generation may not be there when the repayment has to be done, but the fact remains that the projects are long-term, with long-term benefits, and the repayment are long-term as well

Further arguing on the reason for the additional borrowing, Oniha stressed that most of universities and roads that are most durable today were built before this generation, urging the senators to see reason for the long-term project from that perspective.