The Nigerian Government recognizes the infrastructural challenge in the country, and knows its immediate term revenue may not provide for projects — for speedy upgrade, so the government is taking a $9 billion loan from the Export-Import Bank of China, the Islamic Development Bank and the African Development Bank.
Interest rates on the loan will be 2% with a repayment period of 40 years, with a 10-year moratorium. It will be used to create jobs, invest in agriculture, and fund construction and development projects. The loan is part of Nigeria’s 2012-2014 borrowing plan, and will be effective in growing the GDP heading to mid-decade.
The Minister of National Planning Shamsudeen Usman made this known in a briefing in Abuja and said that $3.37 billion will fund electricity projects, with $1.65 billion going to transmission projects and $1.72 billion going to hydro-power generation projects.
