The Federal Executive Council on Wednesday approved the request of Lagos, Rivers, Ogun and Osun states to obtain foreign loans totalling about $403million.
A $1.2billion multi-donor credit for the establishment of the proposed Development Bank of Nigeria as wells as other foreign loans totalling $295million for developmental projects across the country were also approved.
Minister of State for Finance, Ambassador Bashir Yuguda; one of the three ministers who briefed journalists after the meeting, said the fact that most of the loans guaranteed by the Federal Government were for states being governed by the All Progressives Congress further confirmed Jonathan’s position that he was the President of all Nigerians.
He said the President had made a distinction between governance and politics, and would not trivialise his office for any reason.
He said the council approved the request for a $100m credit from the French Development Agency in support of the Lagos Integrated Urban Development Project (Eko-UP) explaining that “the facility is meant to improve living conditions of the most vulnerable urban population of metropolitan Lagos, improve the management and treatment of solid waste, strengthen the capacity of Lagos State and implement urban development projects in Lagos State”.
On the $1.280bn for the establishment of the proposed Development Bank of Nigeria, the minister said the loan would come from the International Bank for Reconstruction and Development, World Bank, Africa Development Bank as well as the Germany and French Development Agencies in the sums of $500m, $450m, $200m and $130m, respectively.
The FEC was presided by Vice President Namadi Sambo in absence of President Goodluck Jonathan who was away in Sokoto for the 90th birthday of former President Shehu Shagari.