Barely after Twenty-four hours of the federal government announced the $4.5 billion loan deal with China to fund agriculture, the Federal Executive Council (FEC) wednesday approved another $1.3 billion loan to support the Development Bank of Nigeria’s funding for small scale businesses.
Making this disclosure while briefing journalists after the FEC meeting in the Presidential Villa, the Minister of Finance, Mrs. Kemi Adeosun, said the loan would enable the bank to fund small and medium enterprises (SMEs).
In her statement, she said the loan proposal which she said would be subject to National Assembly’s approval, consists of $500 million World Bank loan and $450 million to be obtained from the African Development Bank (ADB), among others.
“The other memo was an approval for credit facilities totaling $1.3billion to support the Development Bank of Nigeria. As you know the Development Bank of Nigeria recently received its licence and is being funded by some long term loans from some of our development partners. So, the World Bank had given us $500million, repayable over 21 years and all of this is at concessional rate.
“The African Development Bank is giving us $450million and KFW is giving us $200 million and the French Development Agency is giving us $130million. To access this money, we are ready to disburse but there are two requirements that we need to make and one of them is the legal opinion by the Attorney General of the Federation and the other is the National Assembly approval.
“Before it goes to the National Assembly, it needs to be approved by FEC and the FEC simply approved it today that these loan requests should go to the National Assembly for approval so that we can access this money and the Development Bank of Nigeria can take off fully as it is expected to transform financing to our Micro and Small Medium Enterprises (MSMEs) sector.
“The council enthusiastically approved these facilities which are long tenured, meaning that the DBN will be able to lend to our SMEs over much longer periods and at much lower rates. So, the impact on the SMEs will be quiet considerable. She disclosed the World Bank loan has 21 years of repayment plan.
According to the report in thisday live, Adeosun also disclosed that FEC approved the procurement of project managers and verification consultants to bring 200,000 of the Nigerian military personnel aboard the interpreted personnel payroll information strategy (IPPIS) platform.
“We are hoping to bring in all the military by quarter three of 2017. We have assurances about the savings that we typically generate when we bring agencies on IPPIS. Generally, when we bring agencies onto IPPIS, the payroll goes down. Efforts to sanitise our payroll and make sure that the money we are spending on salaries is very accurate. So, bringing the military on board is a big step in that area,” she added.