President Umaru YaríAdua on Wednesday sought the approval of the Senate for the granting of a soft loan of $10 million (N1.86 billion) to the Democratic Republic of Sao Tome and Principe to assist the poor Gulf of Guinea country address its economic difficulties.

President Yar’Aduaís request was contained a letter dated May 5, 2009 and addressed to the President of the Senate and read on the floor of the upper house in which he explained that the request has been approved by the Federal Executive council on the advice of the Debt Management office which recommended that the grant be advanced to the country as an interest free soft loan.

Part of the letter reads; ìThe Government of the Democratic Republic of Sao Tome and Principe through its Prime Minister, Dr. Patrice Emery Trovoada, made a request for a soft loan of $30 million from the Federal Republic of Nigeria in March 2008.”

President Yar’Adua further said that Nigeria’s assistance to Sao Tome and Principe, a strategic maritime neighbour and anchored in the framework of the Joint Development Zone (JDZ) will strengthen and consolidate security in the gulf region, taking into consideration the geopolitics of international oil crisis and economic interest of Nigeria.

According to President YaríAdua; ìSao Tome and Principe has a previous record of prompt repayment as was evident in the case of a similar loan of $15 million, granted between 2002 and 2004. The loan was fully repaid according to the terms of the loan in April 2007.

The President also said that the repayment of the loan will be from the Production Sharing Contract (PSC), in respect of the JDZ oil concessions, in which there are revenues from signature bonuses, sales of seismic data, royalties, and taxes.

How much is his cut?

Nigeria is still going thru problems and lack of funding and wanna loan other nations.
Like the other guy asked, i wonder how much kick back he will get

Ah ah? Why the talk about 2009 budget deficit naa if we have that amount to loan out? Na wa for our leaders o.

why seek approval just issue the check from your account.

I bet most people can recognize a FOOLISH leader or a businessman when they encounter or read about one! Would any SANE human being consider loaning out a dime of his money, interest free, while also hoping to survive and finance his existence from loan money from someone else? Well, Yara is only an slowpoke if he ever considered giving any loans and looking to get another loan from the World Bank.

Please, refer to this thread: https://www.nairaland.com/nigeria/topic-272239.0.html.

What an IDIOT of a serpent leader!

What is shocking is not that we are borrowing money at all to Sao Tome

it is that we are borrowing money to them without interest

This Yaradua is completely insane, No body is loaning the citizens of Nigeria and that bastard with a fallen kidney is wanting to use the country's resources to loan Sao Tome?, what do they do for us?, do they give our citizens jobs?, how much interest are they paying on the loan?, why granting a loan when we could use that money to build a refinery and solve the problem of fuel scacity there by creating jobs? why giving a loan to another nation when they have electricity to run their country and we dont have?, Since yaradua stole the people's mandate i have been silient, but this one he is about to do at the expense of suffering Nigerians requires his head to be chopped off. We need radicals in Nigeria, we need to take that country back. Even if it is planting a bombs on those politician stealing our resources. like the AGF i wonder why he is allowed to move around freely, why is family is not been discipated. Because that is also what they are doing to us. By stealing our funds the resultant effect is death by starvation, death by lack of electricity, death by generator poisoning, death by lack of health care.

Give and you shall receive, not receive and you shall give. Let's help our brothers. They're not responsible for our economic woes. Blame our leaders for those.

ummm this is strange. 10m dollars isn't that huge an amount though