FEC approves $400m loan for APC states

Four states controlled by the All Progressives Congress (APC) have received the country guarantee needed to procure $400million loans for infrastructural projects — but the federal government has quickly ruled out politics from its decision.

The Federal Executive Council (FEC) on Wednesday guaranteed foreign loans for Lagos, Rivers, Osun and Ogun states.‎

Bashir Yuguda, minister of state for finance, said ‎President Goodluck Jonathan would not diminish his office with political sentiments.

“Like we have been saying over and over again and like Mr. President is saying over and over again. He is the president of Nigerians.  There is a distinction between governance and politics and Mr. President does not bring issues where they are not supposed to be situated” he said.

“Now if we are improving the lives of the people of Port Harcourt or Lagos, these are Nigerians. So president is the president of Nigeria. He will not trivialise his office by neglecting one part of Nigeria because they don’t belong to PDP. That is not President Goodluck Jonathan.

“That is not what President intends to do and it is not what he is going to do if re-elected come March 28. What we are trying to say is that some of the opposition had been talking differently about this kind of approach.”

‎Lagos state plans to obtain $100 million credit from the French Development Agency in support of Lagos Integrated Urban Development Project (Eko-UP).

The facility is meant to improve living conditions of the most vulnerable urban population of metropolitan Lagos, improve management and treatment of solid waste, strengthen the capacity of Lagos state and implement urban development projects in Lagos state

The repayment period for the loan is 20 years, with a seven-year moratorium‎, commitment fee of 0.25 per cent per annum and an appraisal fee of 0.25 per cent.

Rivers state will get an African Development Bank (AfDB) credit facility in the sum of $200 million for the proposed Port Harcourt water supply and sanitation project and an African Development Fund (ADF) credit of $5 million to support Urban Water Sector Reform Project.

The credit facility will be secured from ADB with a repayment period of 15 years, five-year moratorium, the interest is enhanced variable spread loan with lending spread of 0.60 per cent per annum which translate to 1.56 per cent

For the ADF, the principal will be repaid over a period of 22 years, with eight-year grace period, interest rate of1 per cent per annum

Ogun wil obtain $33.174 million credit from the French Development Agency in support of the Ogun State Water supply project.

The facility will be secured from the FDA on blend terms with an interest rate of six months libor plus margin, a repayment period of 20 years, including seven years moratorium, commitment fee of 0.25 per cent per annum and an appraisal fee of 0.25 per cent.

The credit would be on-lend to Ogun State on the same terms and conditions offered by the FDA to the federal government.

An Islamic Development Bank Loan of $65 Million for financing the water supply and sanitation project in Osun state also received the guarantee.

The loan is to be financed under the manufacturing financing (Istisna’a).

Nine new private universities have also received licences, bringing the number of private universities in the country to 60.

Osita Chidoka, minister of aviation, listed the new universities as Augustine University, Ilara, Lagos state; Chrisland University, Owode, Ogun state; Christopher University, Mowe, Ogun state; Hallmark University, Ijebu Itele, Ogun state; Kings University, Ode Omu, Osun state; Michael and Cecilia Ibru University, Orode, Delta state; Mountain Top University, Ogun state; Ritman University, Ikot Ekpene, Akwa Ibom state; and Summit University, Offa, Kwara state.