The
Federal Executive Council (FEC) on Wednesday approved a $1.3 billion
loan credit facility for the commencement of the Development Bank of
Nigeria.The approval came on the heels of a memo submitted by the Finance
Minister, Kemi Adeosun, seeking council’s ratification on the loan
request.
Adeosun, who briefed State House correspondents on the outcome of FEC meeting which was presided over by President Muhammadu Buhari, said $500 million of the amount would come from the World Bank.The minister disclosed that $450 million is expected from the African Development Bank and $200 million from KFW, a financial corporation.$130 million would come from the French Development Agency to make up the $1.3 billion earmarked for the commencement of the bank.
According to her, the loans are also concessionary with interest
rates of less than two percent and have very long repayment periods of
up to 21 years.The loans are aimed at allowing the bank to lend to Small and Medium
Enterprises (SMEs) for a longer period with interest rate lower than in
commercial banks.Adeosun also said that the council approved N550 million contracts to
hire project managers and verification consultants for the integration
of the military’s payroll into the Integrated Payroll and Personnel
Information System (IPPIS).She said that 200,000 military personnel would be integrated into IPPIS.
Adeosun, who briefed State House correspondents on the outcome of FEC meeting which was presided over by President Muhammadu Buhari, said $500 million of the amount would come from the World Bank.The minister disclosed that $450 million is expected from the African Development Bank and $200 million from KFW, a financial corporation.$130 million would come from the French Development Agency to make up the $1.3 billion earmarked for the commencement of the bank.
According to her, the loans are also concessionary with interest
rates of less than two percent and have very long repayment periods of
up to 21 years.The loans are aimed at allowing the bank to lend to Small and Medium
Enterprises (SMEs) for a longer period with interest rate lower than in
commercial banks.Adeosun also said that the council approved N550 million contracts to
hire project managers and verification consultants for the integration
of the military’s payroll into the Integrated Payroll and Personnel
Information System (IPPIS).She said that 200,000 military personnel would be integrated into IPPIS.
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