Acting President Yemi Osinbajo has sought approval of the National Assembly to include the Development Bank of Nigeria and Fund for Agricultural Finance in Nigeria into the 2019-2018 external borrowing plan.
The facility which stands in the value of $1.28bn (USD) and 9million Euro, according to Osinbajo was omitted in the 2014-2016 external borrowing plan approved by the National Assembly.
Osinbajo in a letter dated 16th May, which was read by the Speaker of the House of Representatives, Hon. Yakubu Dogara noted that the Bank is being supported by the World Bank Group, African Development Bank, KFW Development Germany and French Development Agency, in the sums of $500m, $450m, $200m and $130m respectively.
Osinbajo added that the bank was ready to commence operation and the donors are ready to commence disbursement consequent upon the approval by the National Assembly.
“I write in reference to my ealier letter requesting for the consideration and approval of the House for the 2016-2018 External Borrowing (Rolling) plan and to forward herewith two more important underlisted items for inclusion into the said borrowing plan as addendum: Development Bank of Nigeria (DBN), Fund for Agricultural Finance in Nigeria (FAFIN-II).”
According to the Acting President, DBN is a multi’donor supported Bank approved unde the previous administration with the financing agreement executed on 25th February, 2015.
He stated further that FAFIN-II is being supported by the KFW Development Bank of Germany in the sum of 9million Euro.
“The first phase, i.e FAFIN-1 was in the sum of 10.5million Euro and the financing agreement was executed on the 3rd October 2013. It is an investment facility in Agricultural financing, the first tranche has been fully disbursed and donor is ready to provide another tranche of 9million Euro. The second tranche is for the consideration of the gains in the investment of the first tranche, ” he stated.