FG Gets $200m World Bank Loan

[Richard Akindele]

THE Federal Government has obtained a $200 million credit facility from the World Bank to finance the Lagos Metropolitan Development and Governance Project.

A tripartite loan agreement to that effect was, yesterday in Abuja, signed between the Federal Government, the World Bank and Lagos State government.

The Minister of Finance, Mrs. Nenadi Usman who signed on behalf of the Federal Government said the facility would be used to increase the percentage of population with access to safe water in selected slums and reduce flooding, as drainage would be increased across the metropolis.

The two other components of the credit would be to increase the percentage of generated garbage in Lagos that arrives for disposal at landfills, and reduce deviation between actual expenditures and approved budget.

"This new financing agreement brings federal government intervention in Lagos State, in form of IDA credits, since the inception of this administration in 1999 to $478 million, making Lagos State the biggest beneficiary state of World Bank credits in Nigeria today", Mrs. Usman said.

She explained that IDA (International Development Agency) credits were interest free and that the decision of the federal government to take the loan was a demonstration of its commitment to making life better for ordinary Nigerians and that the "credit fits within the context of government's Fiscal Responsibility Bill of not borrowing outside concessionary windows."

In his remarks, the World Bank Country Director, Dr. Hafeez Ghanem said he was elated by the share size of the credit, the bank's largest portfolio in the country, as well as, the size of the population of Lagos.

"The size of the credit and Lagos makes it an attraction, not only for Nigeria but the whole world, which is waiting to see how well the project will be implemented, as work with our partners to improve the live of Nigerians", he said.

While expressing the gratitude of the Government and people of Lagos to the federal government and the World Bank, the Commissioner for Finance, Oyumba Akin Dorhert, said Governor Bola Tinubu would have personally been in Abuja to sign the agreement but for the "recent developments", described the facility as a demonstration of genuine interests in the development of Lagos by the federal government and the World Bank.

Vanguard.