FG approves $200 million loan for Lagos

The Federal Executive Council, FEC, today approved a $200 million loan for Lagos state government. Announcing this to state house correspondents after the FEC meeting, Minister of Information and Culture, Lai Mohammed and Minister of Works, road and Power Babatunde Fashola, said the loan was part of a $600 million loan granted by World Bank to finance the construction of roads and other infrastructural development projects in the state.

“After the first tranche was disbursed, there was a freeze on the second tranche. The initial agreements we had with the World Bank was a 40-year loan, a 10-year moratorium and 0.5 percent interest. But because of the delays that subsequently characterised the partisan interference that took place, our profile as a nation also changed we have become a bigger economy. Though money was being lent to us, we are no longer taking it as a highly indebted nation. So by the time this one was approved, because of the delays, we had lost the opportunity of 40 years as it is now a loan of 25 years, the moratorium has reduced to five years instead of 10 years. The interest rate had gone up to 2.5 percent, but what is still heart-warming about it is that it helps to finance infrastructure.”