*Approves‎ N27.1 billion‎ for Nigeria Content Board

It has also approved ‎one contract to set up a Nigeria Content Development and Monitoring Board by the Ministry of Petroleum Resources ‎in Yenagoa, Bayelsa State at the cost of N27.1 billion.

“Now if we are improving the lives of the people of Port Harcourt or Lagos, these are Nigerians. So President is the President of Nigeria. He will not trivialise his office by neglecting one part of Nigeria because they don’t belong to PDP. That is not President Goodluck Jonathan.

“That is not what the President intends to do and it is not what he is going to do if re-elected on March 28. What we are trying to say is that some of the opposition had been talking differently about this kind of approach.
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“I can remember two weeks ago, one of the governors, Governor of Oyo, was attacking the minister of state, FCT.

“There is no way Lagos State or Rivers State or any of these states can get this facility without the support of the Federal Government by the President and then through the federal ministry of finance.

“You can request for this kind of facility but we give the guarantee and after giving the guarantee the money is not going to you. It comes to us the federal government for lending to you.‎

“President Jonathan has not in any way stopped us the ministers from executing or facilitating assistance to any state that deserves it. That is to be on record.
If that is the President that Nigeria has today we would not have brought these issues to council. We can step it down. We can create issues but that is not what we are saying.
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“What we are telling the opposition is take us up on issues, not propaganda, not false accusations. If you accuse us constructively as government, we have facts, we have figures. ‎We have everything to tell Nigerians that Mr. President is performing, this goes to show that definitely Mr. President is detribalised. He is not after projects that go to the states, projects that go PDP states.

“That is what I am here to confirm and that is what we have just gone through today. President Jonathan wants the welfare of all Nigerians anywhere you are. Mr. President is your President and we want all Nigerians to see him as that and reciprocate the kind gesture he has extended to all Nigerians”, Yuguda said.‎

On whether the government was not piling up debts for future generations, he replied, “Our debt ratio to service is two per cent. Our loans problem are from our domestic loans collected by states not international loans by the federal government. All the loans approved today are domestic loans and note that all the projects the loans are to be used for are to generate revenues so they will pay back the loans.”‎

A breakdown of the loans shows that the council approved the President’s anticipatory approval to obtain $100 million credit from the French Development Agency in support of Lagos Integrated Urban Development Project (Eko-UP).

The facility is meant to improve living conditions of the most vulnerable urban population of metropolitan Lagos, improve management and treatment of solid waste, strengthen the capacity of Lagos State and implement urban development projects in Lagos State.

The payment period for the loan is 20 years, including seven years moratorium‎, commitment fee of 0.25 per cent per annum and an appraisal fee of 0.25 per cent.

The project has three major components: slum upgrading in the two Local Council Development Authorities (LCDAS) of Ifelodun and Bariga by the Lagos State Urban Renewal Authority (LASURA); construction of solid waste management facilities in Lagos State by Lagos State Waste Management Authority (LAWMA) and providing capacity building and technical assistance for LASURA, LAWMA, Project Management Unit and the two LCDAs.

Council also ractified President’s anticipatory approval of African Development Bank (AfDB) credit facility in the sum of $200 million for the proposed Port Harcourt water supply and sanitation project and an African Development Fund ( ADF) credit of $5 million to support Urban Water Sector Reform Project.

The objective is to provide sustainable access to safe drinking water and sanitation to the residents of Port Harcourt; strengthen the Federal Government’s capacity to reform the Urban Water and Sanitation Sector and improve service delivery across the country

The project has five major components including water supply and sanitation infrastructure in Port Harcourt, Institutional support to Port Harcourt water corporation, hygiene, sanitation and environment in Port Harcourt, Urban Water Reform at the Federal Level and project management.

The credit facility will be secured from ADB with a repayment period of 15 years, 5 years moratorium, the interest is enhanced variable spread loan with lending spread of 0.60 per cent per annum which translate to 1.56 per cent

For the ADF, the Principal shall be repaid over a period of 22 years, with eight years grace period, interest rate of1 per cent per annum

The project is captured in the approved 2012-2014 External Borrowing Plan of Federal Government

Council also gave ‎approval for a multi-donor credits from the international bank for reconstruction and development of World Bank, Africa Development Bank, Germany and French Development Agency in the sums of $500 million, $450 million, $200 million and $130 million.

The loan is for the establishment of the proposed Development Bank of Nigeria. The proposed bank is to give lending credit facilities to micro, small and medium enterprises in the country.

The World Bank version of the loan which is $500 million has a 21 years maturity period with 5 years grace period and on 4.25 per cent interest rate.

The ADF version attracts 1 per cent interest rate and 30 years maturity period.

Council further ratified the President’s anticipatory approval to obtain $70 million credit facility from the International Development Association for the proposed Africa Higher education Center of Excellence project.

The proposed project is meant to build on the efforts made under the previous World Bank assisted science and technology education in post- Basic projects.

One of the components under that project was the centers of excellence, with tremendously improved research and exchange programmes within the Nigerian university system.

The proposed ACE project is therefore designed to enhance the effective use of exchange programmes and applied research within the African regional universities and in partnership with international academic institutions, relevant employers and industries.

The main project development objective is to support the recipient countries to promote regional specialization among participating universities in areas that address regional challenges and strengthen the capacities of these universities to deliver quality training and applied research.

The credit is concessional with a service charge of 0.75 percent, commitment charge of 0.5 percent and 1.2 percent interest rate per annum with repayment period of 25 years and a five year moratorium.

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Council also approved to obtain $33.174 million credit from the French Development Agency in support of the Ogun State Water supply project.

The objectives of the project are to increase the coverage, continuity and quality of service in the state capital, increase the financial viability of existing water utility through increase in revenue collection, providing financing to rehabilitate and build infrastructure needed to increase access to water supply services in the state capital and improve the governance of water sector in the state.

The facility will be secured from the FDA on blend terms with an interest rate of six months libor plus margin, a repayment period of 20 years, including seven years moratorium, commitment fee of 0.25 per cent per annum and an appraisal fee of 0.25 per cent.

The credit would be on-lend to Ogun State on the same terms and conditions offered by the FDA to the Federal Government.
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The Council approved the anticipatory approval of an Islamic Development Bank Loan of $65 Million for financing the water supply and sanitation project in Osun state.

The loan is to be financed under the manufacturing financing (IStisna’a).

The overall approval of the project is to amongst other things provide safe water, reduce waterborne diseases, improve agricultural output and tackle sanitation and environmental challenges.

The terms and conditions of the loan as negotiated and agreed between the ID. And the Nigerian officials comprising ministry of finance and Osun State Government in October 2014 and consequently approved by the IDB Board of Directors are as follow:

Manufacturing financing (IStisna’a):
Amount $65 million, repayment period 15 years, gestation period 4 years and markup Libor + 155bps which currently translates to 1.5% per annum

The Project was approved in the 2012-2014 external borrowing plan of the federal government.

Council also approved the President’s anticipatory approval to obtain additional financing of $140million credit from the international Development Association in support of the community and social development project being implemented in the 36 states of the federation and the FCT.

The Federal Government had in 2009 requested for an initial credit facility of $200 million for the community and social development project (CSDP) from the world bank.

As at October 2013 98 per cent of the loan amount was disbursed, however the closing date was extended from December 2013 to December 2014 to allow for utilization of the loan.

The overall project development objective of the proposed additional credit is to increase access to improved social and natural resource infrastructure services in a sustainable manner throughout the country.

The project which will be implemented over a three year period has four components namely: Federal Level coordination and program support, LGA / Sectoral Ministries’ Capacity and a Partnership Building, Community- Driven investment and target on vulnerable group of households and individual in the poor communities .

Council also ratified the President’s anticipatory approval to obtain $70 million credit facility, associated grants of $15 million and $0.48 million in support of the climate change adaptation and agribusiness support programme from International Fund for Agricultural Development

The objective of the programme is to increase incomes, enhanced food security and reduce poverty and vulnerability for small holder farmers, particularly women and youth, as well as create jobs and accelerate economic growth on a sustainable basis.

The project has four major components namely: Productivity Enhancement and Climate Resilience, Enterprise Development for Women and Youth, Institutional Development, Programme Coordinating and Management.

Nigeria has over 32 million Haarable land with only 46 per cent under cultivation. About 80% of the populace derive their livelihood from agriculture and other related activities.

As at 2011, agriculture was contributing about 40% of GDP, yet the sector is still characterized by low productivity and profitability. Presently, Nigeria is one of the world’s largest food importers, spending over USD 8 billion on importation of food items annually.

The Federal Government’s agricultural Transformation Agenda is aimed at reducing poverty, creating employment, improving prosperity and living standards for all Nigerians.

The goals are to achieve a hunger-free Nigeria through an agricultural sector that drives income growth, accelerates achievement of food and nutritional security, generates employment and transforms Nigeria into a leading player in global food market and more importantly, to increase the supply of Nigeria’s food staple crops by 20 million metric tons and create 3.5 million jobs in agriculture by the end of 2015.

The project is to be implemented in Borno, Jigawa, Katsina, Kebbi, Sokoto, Yobe and Zamfara states for six years. The main beneficiaries are 727,000 persons in production states and entrepreneurial groups. IG is also expected to have short and long term effect on local employment within local communities.