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FG borrows $915m to finance budget 2010

ACTING President, Dr. Goodluck Jonathan

By Tordue Salem
ABUJA—ACTING President, Dr. Goodluck Jonathan has unveiled an External Borrowing Plan of Government for 2010. He said his government intends to finance a deficit in the Appropriation Act of 2010, with a World Bank Loan of $915million.

A letter signed by the Acting President and forwarded to the House of Representatives yesterday, stated that of the sum, $179million would be used for urban water and transport, human capacity development and power infrastructure projects in the country.

The letter addressed to the Speaker, Dimeji Bankole and titled “Summary of 2010 External Borrowing Plan of Government,” stated: “I hereby forward to you, the Summary of the 2010 External Borrowing Plan of Government as a major component of the 2010 appropriation.

“Please recall our discussion during our interaction on the 2010 budget of the Federal Government held on 20th April, 2010, to formally transmit the 2010 External Borrowing Plan of the Federal Government to you for consideration and approval.

“You may also further recall that the House of Representatives Committee on Finance had on several occasions, invited the Executive to present the 2010 Borrowing Plan and explain its content including, sustainability and impact on the economy.

This is in compliance with the due process. The Borrowing Plan for 2010 is hereby presented for your kind consideration and approval.”

Country in dire need of infrastructure

The acting President contended the country was “in a dire need to fund the huge infrastructure deficit critical to rapid development and the highly concessionary credit facilities offered by Multilateral Agencies to which Nigeria belongs and commits substantial resources as affiliation fees, has been identified as an inevitable source to compliment the budgetary allocations as appropriate”

He stated that “The World Bank Portfolio of the facilities totaling $915million out of which $179 would be drawn in fiscal 2010, is of particular essence as it would be deployed to urban water and transport, human capacity and power infrastructure projects across the country.”


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