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.”