Nigeria To Borrow N160.7 bn To Expand Agricultural Sector

Nigeria plans to borrow $945 million (N160.7 billion) from the International Development Association (IDA), an arm of the World Bank, to fund irrigation and drainage projects in the country.

$495 million out of the planned debt is meant for irrigation projects in Kano, Sokoto and Zamfara States, while $250 million is meant for urban water projects in Bauchi, Ekiti and Rivers states, and $200 million to improve drainage in Ibadan.

Nigeria can repay the loan over the next 20 years at an interest rate of 1.25 percent and a service cost of 0.75 percent, the minister disclosed.

Once irrigation technology can be put in place, Nigeria will be able to have “year-out year-in farming season,” said Yuguda.

The loan is part of the country’s effort to expand other revenue sources, as it seeks to diversify its economy.

Global oil prices have continued to drop, going below $80 in the past one week. The situation have put Nigeria’s economy at risk, with the country now looking to fall back on its Excess Crude Account, should oil prices fall below the $78 benchmark being set for next year’s budget.

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debt, nigeria

3 Comments

  • GOING ABORROWING AT THE ELEVENTH HOUR.
    Few years back, precisely during OBJ administration our debt was written off. Shortly after this we started borrowing again. The worse came with the present administration. Unfortunatly, there is nothing to show for it. Power sector has not changed. Agriculture has not made any obvious impact.
    It is only when government wants to borrow that noise is made out of nothing. On getting the money, it is no more public business. Accountability is nil. Ogunpa river expansion has always being a recurring project with each government, when would it be finished? Why is it being repeated every year? Irrigation farming is not a new thing in our budget, yet we want to go aborrowing.
    With huge amount spent every year on agriculture, we are yet to see its impact. It is only on media we hear and read the propaganda. Inflation continues to rise, agricultural products have not changed in quantity, they are costly and out of the reach of masses. Nothing like balance diet for common man.
    Where are we? It is hoped that this will not end up in another drainage like that of power and refinery sectors.
    Accountability should be our watch word. We should learn to leave within our resources, and cut our dress according to our clothe.

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