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Tag: Islamic Development Bank

  • FG signs $523,823 agreement with Islamic Bank

    The federal government has signed a $523,823 (N185, 957,165 million) Technical Assistant (TA) Agreement grant with the Islamic Development Bank (ISDB) Group, in Marrakesh, Morocco.

    According to a statement issued and signed by the Special Adviser to the Minister of Finance on Media and Communications, Mr Paul Ella Abechi, “the TA agreement grants would be used to address capacity building/equipment and logistics upgrade in the Hajj Commission and for the improvement of cotton, textile and garment value chain in the Federal Ministry of Industry, Trade and Investment.”

    READ ALSO: Obi blasts federal government “tradermoni”

    The statement added that “the National Hajj Commission of Nigeria (NAHCON) will get $243,823.0, for capacity building/equipment and logistics upgrade while the Federal Ministry of Industry, Trade and Investment will receive the balance of $280,000 for the improvement of cotton, textile and garment value chain.”

    Nigeria’s Minister of finance Zainab Ahmed signed on behalf of the Federal Government while President of the ISDB Group, Dr. Bandar M. H. Hajjar, signed on behalf of the Group, at the 44th ISDB Group Annual Meeting held in Marrakesh, Morrocco.

    Also on the sidelines of the meeting, the Minister was said to have told participants at the conference that state governments in Nigeria are doing their best to boost agriculture and food production. According to her, “State governments in Nigeria are adopting cluster farming which has eased access to funds by farmers, increased growth and allows access to facilities without collateral.”

  • ITFC launches new funding scheme for West African SMEs

    The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, at the weekend announced two major initiatives aimed at deepening economic growth across the West African sub-region.

    The initiatives were announced during a special event sponsored by ITFC at the 5th edition of the two-day Rebranding Africa Forum (RAF) held in Burkina Faso at the weekend. The high-level event was attended by several African Heads of States as well as Ministers and dignitaries from the Middle East and Africa (MEA) region including the President of Burkina Faso, Roch Marc Christian Kaboré, President of Niger, Mahamadou Issoufou, President of Ghana, Nana Addo Akufo-Addo, and the Minister of Economy, Finance and Development of Burkina Faso, Hadizatou Coulibaly Sori among others.

    The ITFC signed a $1.5 billion framework agreement with the Government of Burkina Faso under which ITFC will contribute to mobilising financial resources to finance the export of agricultural commodities such as cotton and the import of agricultural inputs and foodstuff, as well as energy commodities such as crude oil and refined petroleum products.

    Also, ITFC will also finance the extension of lines of financing to local banks to support local small and medium enterprises (SMEs) and the implementation of capacity building programmes for the strategic sectors of the national economy.

    ITFC also launched its West Africa SMEs Programme which is aimed at improving access to trade finance for SMEs in eight West African countries. The programme has been designed to bridge the substantial trade finance gap at the SME level within the region by providing financing lines, capacity building and advisory services to partner banks and SMEs in the West African Economic and Monetary Union (WAEMU) nations, namely Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

  • APC factions hold parallel rallies in Ebonyi

    APC factions hold parallel rallies in Ebonyi

    A planned rally by the All Progressives Congress, APC, in Ebony state Monday raised tension in Abakaliki, the state capital as two factions of the party held parallel rallies to celebrate President Buhari’s return to the country after his medical trip in London.

    The rally was also expected to be used to protest against the state government’s proposed loan of $150million from the African Development Bank and Islamic Development Bank for construction  of over 198km ring road in the state.

    But surprisingly one of the factions of the party instead said it was in support of the $150million loan request from the state government for the construction of the 198km ring road.

    The parallel rallies and protests affected human and vehicular movements in Abakaliki the state capital where they were held.

    But for security agencies who were on hand to ensure there was no breakdown of law and order the two factions would have physical clashed.

    Two factions, one loyal to the Minister of Science and Technology, Dr. Ogbonnaya and governorship candidate of the party in 2015 general election, Senator Julius Ucha have been battling for supremacy and control of the party for years.

    Ucha’s faction of the party has Ben Nwachukwu as its Chairman while Onu’s faction recognises Nwobasi’s Vice, Eze Nwachukwu as Chairman.

    Ucha’s faction had distanced itself from the rally against the proposed $150million loan by the state government and called on its members to disregard the rally.

    Onu’s faction’s rally was against the proposed $150million loan by the state government which was also attended by former Governor of the state, Chief Martin Elechi.

    The state Chairman of the APC Ben Nwaobasi called on members of the party in the state to disregard the anti-$150 million loan rally.

    According to Nwaobasi those opposing the loan are indirectly opposing President Buhari  since the loan was approved by the National Assembly and the Federal Executive Council .

    “We are against the protest. We have told our members to disregard Nwachukwu and his group. They are not speaking for APC. What we want is development and that is why the President is not resting on his oars to ensure that he delivers on his promises.

    “Anybody who is attacking the President for aiding development in Ebonyi state is anti-people. We must not strangulate the progress and development of our state because we are in opposition in the state. The President has emphasized that he belongs to everybody and belongs to nobody”.

    “The loan has been approved by the national assembly that has the largest numbers of APC members. The same loan was deliberated in the federal executive council and approved. Then, to whose interest is Nwachukwu serving? We must unite for the development of our state and country. APC in Ebonyi state is solidly behind President Muhammadu Buhari and we want him to continue to support our state in any measure for the development of the state”, Nwobasi said.

    He explained that APC is in support of any programme that would lead to the development of the state, stressing that the ring road if constructed would boost the economic fortunes of the state and alleviate the sufferings of the people.

    He thanked God for the return of the President from his medical trip from London and urged Nigerians to continue to pray for peace and unity of the country.

    Meanwhile, Governor David Umahi has warned the warring factions against further breakdown of law and order in the state through their rallies and counter rallies.

    The governor through his Chief Press Secretary, Emmanuel Uzor noted that in as much as the state government is not oblivious of the fact that opposition is a veritable ingredient of democracy, all political actors in the APC should imbibe the rule of the game by conducting themselves in a manner that will not pose security threats to the state.

    “The governor condemns seriously the activities of the two factions of APC and advice them to put their house in order as the state government will not fold its hands to allow few political hawks drag the state back”.

  • TCN secures donors’ $1.55b for grid expansion

    TCN secures donors’ $1.55b for grid expansion

    The Transmission Company of Nigeria (TCN) has secured $1.55billion from multilateral donors to revive some projects and expand the grid.

    Its Interim Managing Director, Usman Gur Mohammed made this known to reporters during the 18th Monthly Power Sector and Stakeholder meeting in Kumboso, Kano State.

    He noted that the intervention came from the World Bank, African Development Bank, Islamic Development Bank, European Union and Japan International Corporation Agency (JAICA).

    He said that “the strategy is that we have approached the multilateral donors and we have been able to raise some significant money. We have also resuscitated some project that has not been doing well, like the Abuja transmission project which is supposed to provide three sub- stations and provide another avenue for supply through Abuja from Lafia.

    “We have also resuscitated the JAICA project that has been on the drawing board for  a long some time now, those two projects, plus the projects is about 1.55 billion dollars   which is coming from the world bank , the African Development Bank the Islamic  Development Bank, JAICA itself, and the European union is also giving us a grant.”

    He recalled that when he assumed office he discovered that TCN capacity to wheel power is actually higher than the capacity that the distribution companies (DisCos).

    According to him, there was need for grid expansion and cash paucity, which made it expedient that the TCN had to seek the support of the Federal Ministry of Finance and Ministry of Power to raise money from donor agencies.

    He revealed that “we have a stranded  load  generation  of  about 2,000 megawatts, this is not healthy  for the development of the sector, as time goes on if  we can’t pick those  generation it means that we are going to kill investment in the generation section.

    “On growing the load and avoid load rejection, we are working with Discos to see how to improve their capacity and we have appointed, Interface focal officers to help the DiSCos pick more load.”

    He noted that the company last week advertised transformer capacity for Kano, Kaduna, Lagos and Shiroro region.

    He said that TCN is now working towards realizing 20,000 megawatts of transmission capacity in the next few years.

    The Interim Managing Director pointed out that right of way has become a crucial challenge in the power sector which has resulted in a study by the West African Power Pool on the line from the Birnin- kebbi boarder of Nigeria from.

    He pointed out that since the payment of compensation for right of ways Nigeria has become a crucial problem, the TCN has started collaborating with State governments.

    Continuing, he said that : “We are collaborating with states in every areas that we  are  putting  a significant transmission capacity.  We are working to expand  the lines from Shiroro  to Kaduna, and from Kaduna to Kano, and we are putting a code line that will carry 2,400MW capacity, we have never had  that kind of line in Nigeria.

    “But we need to collaborate with sates and we have stated with Kaduna, the governor of Kaduna  is the one that is even paying the compensation  for some of the places where we are putting  sub –stations in Kaduna.”

    The Governor of Kano State, according to him, is also supporting TCN on the right  of ways  between Kano and Kaduna border.

    The company, he added, is also working with the governors of Abia,  Lagos,  Imo and Ogun states to enhance transmission capacity .

  • South-south senators may oppose $1.5b loan for states

    South-south senators may oppose $1.5b loan for states

    Federal Government request for Senate approval of $1.492 billion for development projects in ten states may spark another round of protest in the Senate.

    Senate President, Abubakar Bukola Saraki read Acting President Yemi Osinbajo’s letter entitled “Re- Federal Executive Council approval of the 2016-2018 external borrowing (rolling) plan” which gave details of the $1.492 billion loan request.

    Only two weeks ago, the South East Senate caucus protested against the exclusion of the zone in the $5.9 billion Chinese Exim bank loan for the development of rail lines in some parts of the country.

    Some south-south senators are already gearing up to oppose the approval of the fresh loan as a result of non-inclusion of any state from the south-south geo-political zone in the loan request.

    A prominent member of the south south Senate caucus said that they were taken aback when Saraki read the letter to discover that no state from the zone was included in the loan request.

    He noted that some of them have resolved to send words home to their governors to find out if they requested for the loan and were left out.

    “If turns out that any south south state was among the states that sought the loan and was left out we will definite oppose the approval of the loan. How can a loan of over one billion dollars for development projects be approved and there is nothing for the south south,” he said.

    In the letter, Professor Osinbajo said, “ I write in reference to my earlier letter requesting for the consideration and approval of the Senate for the 2016-2018 External Borrowing Plan and to request the Senate to separate the states’ projects from the items listed in the Borrowing Plan with a view to giving them accelerated consideration.”

    He listed the affected states and their projects as:

    Kaduna State Development Policy Operation (DPO) $350 million to be funded with a loam from the World Bank Assisted project.

    Ogun State Development Policy Project (DPO) $350 million also to be funded with a loan from the World Bank Assisted Project.

    Ebonyi Ring Road Project $70million to be funded by African Development Bank and co-financed with Islamic Development Bank.

    Rural Access and Mobility Project (RAMP) $100 million to be funded by the ADB

    Katsina Health System Project $110 million to be financed by Islamic Development Bank

    Jigawa State Integrated Rural Development Project $32.4million also to be financed by the Islamic Development Bank.

    Another Ebonyi State Ring Road Project $80million to be co-financed with AFDB

    Kano State Integrated Agricultural and Water Resources Development $200 million.

    Enugu, Kano, Plateau and Ondo States Third National Urban Water Sector Reform Project (NUWSRP-111 $200 million to be financed by French Development Agency, giving a total loan of $1,492,400,000.00

  • Osinbajo seeks Reps’ approval for $1.5b external loan for 10 states

    Osinbajo seeks Reps’ approval for $1.5b external loan for 10 states

    The House of Representatives is set to consider the approval of $1.5b external loan for 10 states.

    The states are Abia, Ebonyi, Enugu, Jigawa, Kaduna, Kano, Katsina, Plateau, Ogun and Ondo.

    The loan request presented to the Speaker of the House of Representatives, Yakubu Dogara by the Acting President was meant infrastructural development for the affected states.

    In the letters dated 25th May, 2017, he stated that the request was in tune with the 2016-2018 External Borrowing Plan earlier approved by the National Assembly.

    Osinbajo stated that the total loans being presented for special consideration and approval is US$1,492,400,000.00.

    While soliciting for the approval of the House, he added, “It will be highly appreciated if you could kindly give this request an expedited consideration and approval to enable the states meet up with all other effectiveness conditions for implementation of the projects in their respective states”.

    The breakdown showed that Kaduna is seeking $350m from World Bank; Ogun, $350m (World Bank); Ebonyi, $70m (AfDB); Abia, $100m (AfDB); Katsina, $110m (Islamic Development Bank), Jigawa, $32.4m (Islamic Development Bank); Ebonyi, $80m (Islamic Development Bank); and Kano, $200m.

    Enugu, Kano, Plateau and Ondo loan requests totaled $200m from French Development Agency.

  • Sani to Islamic Bank: Don’t loan money to Northern governors

    Sani to Islamic Bank: Don’t loan money to Northern governors

    The Chairman, Senate Committee on Foreign and Domestic Debt, Senator Shehu Sani, on Friday asked the Islamic Development Bank not to release any money to governors of the 19 Northern states, saying their move to obtain loan from the bank run contrary to laws of the country.

    Sani accused the governors of flouting the law on external borrowing, insisting that the move is in direct conflict with Nigerian laws.

    In a statement made available to The Nation in Abuja, Sani who is also the Senator representing Kaduna Central, said the extant laws require any government or agency of government that wants to secure a foreign loan to first secure the support of the Federal Government.

    According to the senator, the governors cannot just go to Saudi Arabia to solicit or collect loans without following the due process of law.

    He said: “The action of the governors runs contrary to the relevant provisions of the act that clearly and unambiguously rest the exclusive right to borrow externally on the federal government.

    “The Debt management office act 2003, section 21 and external borrowing guidelines, 2008-2012, paragraph 2.1 clearly states that any government or its agencies can only obtain external loan through the federal government and such loans must be supported by federal government guarantee. The act is explicitly clear that no state, local government or federal agency shall on its own borrow externally.

    “Governors of the northern states cannot just jet out to Saudi Arabia to solicit or collect loans without following the due process of law. The law further states that state governments and their agencies wishing to obtain external loans shall obtain federal government approval in principle from the federal Ministry of Finance. This is the provisions of paragraph 2:2 (II) of the external borrowing guidelines

    “In addition to the above, paragraph 2.2 (v) of the same guideline succinctly declares that all external borrowing proposals of the governments and their agencies for the next fiscal year must be submitted not later than 90 days preceding the year to the minister of finance for incorporation into the public sector external borrowing program for the coming year.

    “Paragraph 2:2 (vii) demands that borrowing proposal must be submitted to the federal ministry of finance and the Debt Management office for consideration.”