Osinbajo seeks approval to include $1.28bn, €9m in borrowing plan

Acting President Yemi Osinbajo has sought to include the Development Bank of Nigeria (DBN) and Fund for Agricultural Finance in Nigeria (FAFIN-II) in the 2016-2018 borrowing plan.

In a letter addressed to Yakubu Dogara, speaker of the house of representatives, Osinbajo said the DBN which is a multi-donor supported bank was omitted in the 2014-2016 external borrowing plan.

The acting president explained that the donors were ready to release funds to the DBN following the approval of the national assembly.

He also said FAFIN is being supported with a sum of €9 million by the KfW development bank of Germany after it had released €10.5 million in 2013 in the first tranche.

Osinbajo said the second tranche of the required €9 million is to consolidate on the gains of the first tranche.

“Mr. Speaker may wish to know that the DBN is a multi-donor supported bank approved under the previous administration with financing agreements executed on 25th February 2015,” the letter by Osinbajo read.

“However, the facility in the sum of $1.28 billion appeared to be inadvertently omitted in the 2014-2016 external borrowing plan approved by the national assembly.

“In view of the importance attached to these two projects by our administration, it has become imperative to seek for your usual understanding and kind consideration for the inclusion of the DBN and FAFIN-II into the 2016-2018 external borrowing plan as addendum.”