Following the approval of a $22.7billion loan request by the Nigerian Senate led by Ahmed Ibrahim Lawan, a breakdown of how the said loan will be spent has emerged.

The Senate led by Bukola Saraka had earlier turned down the same loan request by President Muhammadu Buhari’s in 2016.

The Lawan led Senate on its plenary session on Thursday, approved the 2016-2018 external borrowing plan, which the president had explained will be used for critical projects across the country.

Nigeria’s current public debt profile stands at a whooping N26.215 trillion as of September 2019.

A document that accompanied the president’s request revealed that the loan is for about 35 projects, many of which are infrastructural.

The document also depict that part of the money will be spent on new projects while others will go into already existing projects.

Where will the loan come from?

Over 70 per cent of the loan will come from the Exim Bank of China, while the remaining funds will come from the World Bank, Africa Development Bank among others.

Here are the institutions the loan is being requested:

Exim Bank of China ($17bn)
World Bank ($2.95bn)
Africa Development Bank ($1.88bn)
Islamic Development Bank ($110m)
Japan International Cooperation Agency ($200m).
German Development Bank ($20m)
French Development Agency ($480m)

The Spending Plan

Here is how the Buhari administration plans to spend the loan and where the projects are located as contained in the document:

Infrastructure
  • Emergency road rehabilitation and maintenance ($434.7m, nationwide)
  • Abidjan-Lagos corridor highway development project study ($1.5m; multinational)
  • Abuja mass rail transit project