The Nation Newspaper

Tag: LOAN

  • Lalong: Plateau yet to get full bailout loan from CBN

    Lalong: Plateau yet to get full bailout loan from CBN

    Plateau State Governor Simon Lalong has said the state is yet to get full bailout loan from the Central Bank of Nigeria (CBN).

    He added that only N5 billion of the N20 billion meant for the state was released.

    Lalong, who spoke at an All Progressives Congress’ (APC’s) media roundtable in Abuja, said he was doing everything to ensure that the balance of the bailout fund was released to his state to enable him continue his programmes.

    He said he was discussing with the CBN to release the balance of the bailout loan, adding that the state had cleared backlog of salaries owed civil servants.

    “We only owe two months salary.”

    The governor said without the full bailout fund, he paid the salary arrears of local government workers.

    He said: “I was at the CBN pursuing bailout loan for Plateau. The state was supposed to get N10 billion for salaries and N10 billion for infrastructure. But we got only N5 billion and with that, we cleared backlog of salaries.

    “From last May to date we are not owing, except the ones we inherited. If I get my balance of N5 billion within a week, the outstanding debts will be cleared.”

    Commenting on the Treasury Single Account, Lalong said: “Other states may be finding it difficult, not Plateau. We are implementing TSA. Immediately I saw the introduction of TSA by Mr. President, I called my accountant-general and commissioner for Finance and told them they must implement.

    “I am not an accountant and at that time, I didn’t know the implication. But from what I saw about the advantages of TSA, I said let it be implemented in the state. I set up a committee and today it is being implemented. I don’t know why some governors are finding it difficult to implement TSA.”

  • $200m World Bank loan for Lagos to tackle infrastructure  

    $200m World Bank loan for Lagos to tackle infrastructure  

    The Federal Executive Council (FEC) yesterday approved a $200 million World Bank loan for Lagos State.

    It is the second tranche of a $600 million loan which the state will spend on roads and other infrastructure.

    Minister of Information Lai Mohammed and Minister of Power, Works and Housing Babatunde Fashola, who told the media about the decision of the FEC to okay the facility, said the state took the first tranche in 2010 when Fashola was governor, but the second  was not approved by the Dr. Goodluck Jonathan administration for partisan reasons.

    There was a mild drama at the FEC meeting as President Muhammadu Buhari surprised many ministers when he arrived at the Council Chamber venue 10 minutes earlier than the 10am  commencement time.

    There were only 19 of the 36 ministers seated when he came in. Vice President Yemi Osinbajo had also not arrived at the chamber.

    The President noted that he came too early but he immediately called for the rendition of the National Anthem and prayers for the meeting proceedings to begin.

    Osinbajo and other ministers arrived later to joim the meeting before the 10:00 fixed starting time.

    Briefing reporters, Mohammed said: “We just finished the Federal Executive Council meeting and the major item which will be of interest and was discussed and which the Council approved is the memo which was put forward by the Minister of Finance for approval to obtain additional $200 million loan from International Development Association (IDA), which is a window of the World Bank in support of the Lagos State development policy operation.”

    He said the loan will allow Lagos State to complete its very ambitious projects.

    Fashola, who initiated the loan, noted that the $200 million loan was a segment of a $600 million loan for a programme of developmental initiatives for Lagos State, which was approved in 2010.

    According to him, it was supposed to come in trenches of $200 million each year from 2011 to 2013.

    He noted that the loans suffered delays as a result of partisan political differences in the last administration.

    He said: “After the first tranche was disbursed, there was freeze on the second tranche. The initial agreement we had with the World Bank was a 40-year loan, a 10-year moratorium, 0.5% interest.

    “But because of the delays, the partisan interference that took place, our profile as a nation also changed. By the time this one was approved now because of the delays, we had lost the opportunity of the 40 years, it is now a loan of 25 years, the moratorium has reduced to five years instead of 10 years; the interest rate has gone up to 1.25 per cent.

    “But what is still heartwarming about it is that it helps to finance infrastructure. When we look at roads construction and the value chain that benefit from it, the labourers, those who sell iron rods, artisans, craftsmen, that is how globally economics have been reflated,” he said.

    Noting that Edo, Ekiti and Rivers states have also benefited from such loan, Fashola said the repayment is deducted at source from their Federation Account allocation.

    Throwing light on the delays in granting the loan under former President Jonathan’s administration, Fashola said former Minister of Finance Ngozi Okonjo-Iweala was always telling him that there were complaints that only All Progressives Congress (APC)-controlled states were benefiting from the loan.

  • Senate seeks probe of $40m loan to aviation sector

    The Senate yesterday asked its joint Committee on Aviation and Anti-Corruption to investigate the disbursement and utilisation of $40 million loan alleged to have been released by the Federal Government in 2011 for the rehabilitation and development of infrastructure in the aviation industry.

    The upper chamber also mandated the same committee to probe the release of N33.55 billion in the same year for the same purpose.

    This followed the consideration and adoption of the report of the Senate ad-hoc committee on Aviation which investigated a motion on “The worrisome and unstable position of Nigerian Aviation industry.”

    The report was presented by Senator Rabiu Musa Kwankwaso (Kano Central)

    The Senate said the Chief Executives of Aviation agencies in the country should take steps to replace aging pilots in their system.

    It said that the Nigerian Airspace Management Agency (NAMA) and Federal Aviation Authority of Nigeria (FAAN) should pay more emphasis on the provision of state of the art flying equipment to enhance air safety.

    Other recommendations of the Committee adopted included that “Good leadership spirit should be inculcated by the Chief executive of aviation parastatals and other stakeholders to refurbish and maintain physical facility and equipment.

    “While the building of infrastructure in some of our airports are appreciated, NAMA and FAAN should pay more emphasis on the provision of the state of the art flying equipment that will enhance safety and assist the pilots to do their jobs professionally and confidently without endangering their lives and that of passengers, to guide against a situation where planes cannot take off and land because of poor visibility as a result of fog.”

    The Senate agreed that “because of the delicate nature of the aviation industry only qualified and properly trained people should be employed while “the chief executive of aviation parastatals, Nigeria College of Aviation Technology should put in place a programme in place to replace the aging pilots in aviation industry taking into cognisance young pilots on ground that needed a particular flying hours before they can be employed.”

    The Senate said that NAMA should be directed to henceforth stop the collection of navigational charges on all training aircrafts in Nigeria while the aviation section in federal, ministry of transport should not interfere in the day to day running of the specialised unit in the aviation industry.

    The Senate said that the federal airport authority of Nigeria (FAAN) should be directed to rehabilitate and complete all abandoned structures and pull down those that have lost their value.

  • Firm launches study abroad loan scheme

    Zedvance Limited has created an avenue for students seeking to study abroad to do so through its loan scheme.

    The loan package, called Easy Travels Loans, would provide funds to the students to pay their fees in lump sum while they or their guardians repay instalmentally.

    Chief Operating Officer of Zedvance Limited, Mr Kayode Oluwagboye, said the loan can be accessed once the students meet all the necessary requirements.

    He said: “Pupils can borrow to apply for their visas as well as pay school fees to their desired institution overseas once the applicant can service the loan as well as meet other basic requirement.”

    The documents needed include: admission letter, passport photograph, identity card, utility bills as well as six-month bank statement.

    Oluwagboye was, however, silent on the percentage of interest on the loan.

    He said the initiative started because they discovered that parents and guardians could not afford to pay at once but were capable of doing so instalmentally.

    Lagos State Governor, Akinwunmi Ambode, underscored the need to fix the education sector to boost the economy.

    Ambode, who was represented by Mrs Olabisi Ariyo, the Permanent Secretary, Lagos State Ministry of Education, said quality manpower would secure Nigeria’s future, not oil and gas.

    “Our educational system must be functional and capable of producing a younger generation with high technical skills and creative minds that can think out of the box in proffering solutions to the challenges facing our nations in all sectors,” he said.

    One of the keynote speakers at the event, Prof. Oluwayemisi Obashoro, also called on pupils to desist from going to school to get certificates but rather focus on solving problems with the knowledge gained.

    Speaking on the theme:  “The Impact of quality education on  the economy,” she said: “Is our education in Nigeria solving problems Or we are just acquiring certificates If we cannot solve half of our problems then we have a problem. Our education must contribute progressively and positively towards economic advancement.”

  • AfDB approves $1.5bn loan to Egypt

    AfDB approves $1.5bn loan to Egypt

    The African Development Bank (AfDB) has approved a $1.5 billion loan to Egypt to be paid out over three years, International Cooperation Minister Sahar Nasr said on Tuesday.

    The first $500 million of the loan will be disbursed immediately, said Nasr.
    He said the loan would go toward the government’s economic development programme and national projects.

  • LAPO MfB secures N2.4b AfDB loan

    LAPO MfB secures N2.4b AfDB loan

    The African Development Bank Group (AfDB) has granted a N2.364 billion ($12 million) credit facility to Nigeria’s LAPO Microfinance Bank Ltd.

    The bank, in a statement yesterday, said  the loan agreement was to support inclusive growth in the country.

    It noted that the facility would equally enhance local Small and Medium Enterprises (SMEs).

    LAPO MfB is the largest microfinance bank in Nigeria with 1.1 million clients and 327 branches, currently operating in 26 out of 36 states in the country.

    Given its history of group-lending model centred on a community-based approach, LAPO predominantly focuses on low-income households and women by providing an average loan size of N38,000 ($190).

    “The corporate AfDB loan will support a proposed expansion project of LAPO MfB to achieve its goal to serve five  million clients by 2017.

    “It is focusing on low-income individuals (predominantly women) and micro/small enterprises by providing affordable access to finance, savings, credit and insurance in urban and rural areas.

    “The MfB will also expand its geographic coverage and number of branches,’’ the statement explained.

    According to the bank, with the loan, multi-faceted development outcomes are expected for LAPO MfB.

    “It will increase the proportion of poor households and small businesses with access to financial services in Nigeria and its financial sector infrastructure, as it plans to expand their branch network.

    “The funding will also stimulate product development aimed at meeting diverse needs of low-income households and local enterprises, including a soft loan scheme to provide clients a more convenient and safe solar powered lanterns.

    “It will enhance financial inclusion of women and female entrepreneurs and support increased revenue for poor households,’’ the bank added.

    In spite of its lower-income client base, LAPO’s total loan portfolio exceeded N40 billion ($200 million) in December last year due to its efficient decentralised banking model.

    LAPO has achieved its goal to reach over one million clients by end of 2013, and is targeting to reach five million clients by the end of its five-year business plan (2013-2017).

    It has 3,184 workers across 327 branches to prospect for new business and effectively serve its existing customers on the ground.

  • Ekiti won’t pay retirees from N9.6b bailout loan

    •Govt to clear arrears of salaries, bonuses

    Ekiti retirees may have to wait longer before getting their gratuities as the state will not pay them from the N9.6 billion Federal Government “bailout funds”.

    The Head of Service, Gbenga Faseluka, broke the news in Ado Ekiti, the state capital, yesterday at a briefing on the  Civil Service Week.

    Faseluka said payment of gratuities would not be  from the N9.6 billion “bailout funds”.

    He said the government would use the bailout funds to clear arrears of August and September 2014 salaries, 2014 and 2015 leave bonuses and pensions.

    Faseluka said: “All arrears of salaries, pensions and leave bonuses will be attended to as soon as we receive the funds. Gratuities may not be attended to immediately.

    “Approvals for the funds have been secured from the State Executive Council and legislative backing received from the House of Assembly to access the funds.”

    He added that the last time retirees received their gratuities was in September 2012, noting that since then, the arrears had accumulated as more officers retired.

    Restating government’s commitment to workers’ welfare, Faseluka said over N200 million was disbursed as car loans to 677 workers while over N192 million was disbursed to 464 workers as housing loans.

    Speaking on lateness to work, Faseluka described it as “unacceptable and not in the interest of the state” warning them to desist from such.

     

  • Assembly approves N19.6bn loan for Fayose’s govt

    Assembly approves N19.6bn loan for Fayose’s govt

    Ekiti State House of Assembly on Wednesday unanimously approved N19.6 billion loan facilities for the state government.

    The News Agency of Nigeria (NAN) reports that the approval followed two different letters written by Governor Ayo Fayose requesting the house consent to access the loans.

    The letters are, “Consideration of the proposal of the State Government to Partake in the Excess Crude Account and Consideration of the Intention of Ekiti State Government to Partake in the Federal Government Bailout Package to pay Backlog of Workers’ Salaries’’.

    A breakdown of the loans showed that the state would access N10 billion from Access Bank on 10 years and 9 per cent repayment arrangement.

    Also, the state government would access N9, 604,430,000 from Skye Bank on 20 years and 9 per cent repayment arrangement.

    The Leader of the house, Mr. Akinyele Olatunji, had appealed to members to give the request accelerated considerations.

    Olatunji described the government intention as a good development, saying that it would better the lives of Ekiti citizenry.

    “Access to the N10 billion Excess Crude Account (ECA) and over N9.6 billion Federal Government bailout loan, respectively is a good development for the state.

    “The loans will enable the present administration provide basic infrastructure and social amenities for its citizens.

    “If the government is able to access these loans the government will be able to execute developmental projects.

    “Apart from the loan being used to pay the backlog of workers’ salaries, it will also enable the government provide some basic social amenities in the state,’’ Olatunji said.

    The views of the leader of the house was corroborated by the trio of Messrs Gboyega Aribisogan (Ikole I), Deputy Speaker, Segun Adewumi (Ekiti West I), and Dele Fajemileyin (Gbonyin).

    They described the decision by the state government to access the loans as the best way out of the current financial situation.

  • Food firm, bank quarrel over N1.6b loan

    A confectionery company has gone to court to challenge the claim that it is owing United Bank of Africa (UBA) N1.6 billion.

    In a suit filed at the Lagos High Court, Food Concepts Plc faulted the bank’s claim, accusing it of breaching the terms of a N1.6 billion loan under the Commercial Agricultural Credit Scheme (CACS).

    It said it was shocked by the bank’s publication of its name as “a chronic debtor” in three newspapers when the facility would not expire until next year.

    In the suit filed by Mrs. Omohafe Opara of Rickey Tarfa and Co, Food Concepts is asking the court for a perpetual injunction restraining the bank or the firm’s agents from attaching any of the firm’s assets; restraining the bank from making further malicious publication against it; preventing the bank or its agents from any form of liquidation or receivership and directing the bank to render account of the N1.6billion loan.

    The firm also sought an order compelling UBA to reconcile its accounts in line with the CACS.

    Food Concepts sought the N1.6 billion loan under the CACS  provided by the Central Bank of Nigeria (CBN) to develop a Greenfield Poultry Farm in Abeokuta, the Ogun State capital, as a backward integration initiative under the name of Free Range Farms Limited.

    It said it pledged specific assets as security for the loan (including but not limited to the farm’s assets), adding that as such, its exposure is limited to those specified assets.

    The claimant said it generally complained about delays in the disbursement of the loan, alleging that it discovered irregularities in its accounts with UBA which necessitated a reconciliation.

    It accused the bank of poor handling of the disbursement of the loan, adding that this affected the project’s outcome.

    The claimant said it secured the First City Monument Bank’s commitment to refinance the loan with CBN’s knowledge, claiming that this did not stop UBA from filing a winding up petition.

    “Despite the winding up petition, the bank still went ahead to enter into a Memorandum of Understanding (MoU) with the claimant and FCMB in full liquidation of the outstanding reconciled debt”, Food Concepts alleged.

    It accused the bank of damaging its “credibility and reputation” by publishing its name as a “chronic debtor”, praying the court for N1 billion as general damages and N10 million as costs.

     

  • $600m China Exim-Bank rail loan not diverted, says Okonjo-Iweala

    $600m China Exim-Bank rail loan not diverted, says Okonjo-Iweala

    The former Minister of Finance, Dr Ngozi Okonjo-Iweala, has described as false, the allegation that she diverted a substantial part of a one billion dollar loan from the China-Exim Bank.

    The refuttal is contained in a statement in Abuja yesterday by Mr Paul Nwabuikwu, Special Adviser to Okonjo-Iweala.

    The Permanent Secretary, Ministry of Transport, Alhaji Mohammed Bashar, said about $600 million of the one $1 billion loan obtained from the China-Exim Bank for Kano-Lagos rail project was diverted to other projects.

    Okonjo-Iweala said the Goodluck Jonathan administration never obtained a loan from the China-Exim Bank for Kano-Lagos rail project.

    “The alleged diversion has no substance for the simple reason that the Kano-Lagos project was not among the projects presented for funding by the China-Exim bank.

    “It was the Lagos–Ibadan rail project, not Lagos-Kano rail project that was proposed in the original application to the China-Exim Bank, but in the end, no funds were assigned for Lagos-Ibadan rail project.

    She said the projects covered by the China Exim-Bank loan were at different stages.

    They include “the $500 million expansion of four International airport terminals in Lagos, Kano, Abuja and Port Harcourt.

    “There is also the $500 million Abuja Light Rail project; $984 million Zungeru Hydro-electric power project and $100 million Galaxy Backbone project,” she said.

    Okonjo-Iweala said the diversion of the fund would have been extremely difficult due the terms attached to the loan.

    “The procedure is that funds for approved loans remain in the China-EximBank and are released directly to the Chinese firm executing the contract only after the presentation of duly certified proof of work by the responsible ministry.

    “In this case it would have been the Federal Ministry of Transport, based on the agreed milestones.

    “For the sake of emphasis, the China-Exim Bank does not disburse money directly to government and therefore the issue of diversion does not arise,” she said.