http:///csp/cms/sites/Next/Money/Business/5437605-146/story.csp

[Nigeria's external debt profile keep soaring in the face of the current global economic meltdown, as the Federal Government on Monday secured another $195 million (about ₦28,665,000,000) loan package from the World Bank.

The loan, for which the concessional agreement was sealed in Abuja will be deployed in the fight against malaria and the declining standard of education.

The agreement was signed on behalf of the Federal Government by the Minister of Finance, Mansur Muhtar, and witnessed by his counterpart in the Ministry of Health, Babatunde Oshotimehin.

The loan was secured against the backdrop of reports that the country losses at least a child every minute to malaria scourge and the negative impact of the falling standard of education.

When the new loan package is added to the existing external commitments to various international finance organizations and groups, Nigeria's debt portfolio would have soared above ₦558.6 billion ($3.8 billion), with the World Bank component rising to about ₦327 billion ($2.31 billion).

Of the new $195 million facility, about $100 million will be set aside as additional financing credit to fight malaria, in line with United Nations goal of a universal campaign against the disease.

The remaining $90 million is an International Development Association (IDA) support facility to improve the quality of public junior and senior secondary education in Lagos State, while $5 million will be used in strengthening the Federal Post-Basic Education Strategy with an objective to provide capacity building and technical assistance to the Federal Ministry of Education.

The IDA credit facilities are highly concessional, with a repayment period of 40 years, including a 10 - year moratorium.

It attracts only a commitment charge of 0.50 percent per annum payable on the undisbursed amount and a service charge of 0.75 percent per annum payable on the amount withdrawn.

Mr. Muhtar, in his speech, on behalf of commissioners of finance of the states that will benefit from the loan, promised that the facility would be spent judiciously.

He said the Federal Government would apply the same terms and rate to the seven participating States in the subsidiary agreement to be signed with them.

Also speaking, Mr. Osotimehin promised that apart from Anambra and Jigawa states that served as pilot areas for the campaign against malaria in the country, about 17 other states would be given insecticide treated nets later in the year.

The minister, who disclosed that the loan would not be enough in eliminating malaria, however, promised to judiciously utilize the money.

"We should be able to show evidence that we spent what we were given well and show results. The money would not be enough. We will need more but we will show evidence of good use of the one that we were given", he declared.

Earlier in 2006, government had secured a $180 million World Bank loan for Malaria Control Booster Project, which has been providing improved access to and utilization of malaria Plus Package (MPP) in some participating states of Akwa Ibom, Anambra, Bauchi, Gombe, Jigawa, Kano and Rivers.

World Bank Country Director, Onoh Ruhl commended the country's efforts in combating malaria scourge, even as he noted that the efforts of the Ministry of Health in enlisting the cooperation of religious leaders in the fight are already yielding fruitful results
/quote]

After all the effort of the last administration.

is this money really goin into education

equippin our labs

providing pc etc

yarabrainless

keep ur eyes on the ball, debt buildin up

what have they got to show for all these loans, and debts?
i guess in the pocket of the present and past leaders.

Unfortunately, the govt will continue to borrow money to fill the void created by MENDs campaign.

Between 1999 and now, more than 20 communities have been wiped out completely and more than 50 000 persons killed by the Nigerian Police and Army.

More than 1.5 million tons of oil, equivalent to one Exxon-Valdez disaster every year for 50 years, have spilled into the delta, poisoning delicate mangrove and rain forest ecosystems and destroying fishing and farming livelihoods. Constant gas flaring releases toxic chemicals into the atmosphere, causing cancer, birth defects, respiratory diseases, and acid rain so toxic it corrodes metal roofs.
http://www.pambazuka.org/en/category/comment/57769/print

Nigeria’s External Debt Reaches $3.8b

Which debt again?i thought it was cleared  in the obj regime?

philip0906:

Which debt again?i thought it was cleared  in the obj regime?

Cleared ko, Cleared ni

ikeyman00:

is this money really goin into education

equippin our labs

providing pc etc

yarabrainless

keep ur eyes on the ball, debt buildin up

The last one just borrowed went into fighting malaria check the first passage of the post.

MrCrackles:

A round of applause for the GBESE nation!

And another round please. one for each year ( yar adua is in his second year now)

philip0906:

Which debt again?i thought it was cleared  in the obj regime?

Good morning sorry this is yar adua's regime

Fhemmmy:

Cleared ko, Cleared ni

Tell him ooo jare, Let me even put it well.

It was cleared but was not stopped from further growing up.

send this to AFAM. I saw in one thread where he said Nigeria owes nothing.

no21:

send this to AFAM. I saw in one thread where he said Nigeria owes nothing.

How do i do that?

How much do we have left in our reserves??

Kobojunkie:

How much do we have left in our reserves??

This was for June

http://www.silobreaker.com/nigerian-banks-under-pressure-as-external-reserves-drop-to-444bn--fitch-5_2262438742956441600

Nigerian banks under pressure as external reserves drop to $44.4bn Fitch

Following intense pressure on the economy arising from the global financial crisis, a report released by the Fitch has disclosed that the countrys external reserves have dipped to $44.8 billion from $64 billion in August last year.

Fitch revealed,

But it has dropped further in july

Abuja — The International Monetary Fund (IMF) has charged the Central Bank of Nigeria (CBN) to concentrate on managing interest rates and external reserves well.

IMF Resident Representative, Mr David Moellar, gave the charge when he led an IMF delegation to a meeting with the Minister of Finance, Dr. Mansur Muhtar at the weekend, saying stability in the financial sector is necessary for the realisation of the goals of Vision 2020.

Banks in the country presently charge between 18 percent to 22 percent interest rates, while the country's external reserves is down to $43 billion compared to $64 billion at the third quarter of last year.

A statement from the Special Assistant on Communication to Minister of Finance, Ms Deborah Okafor, said Mr. Moellar commended Nigeria for tackling fiscal constraint and "suggested that the 2010 budget should be prepared, taking into consideration the current economic realities, especially the fluctuation in oil prices."

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She said the minister told the IMF team that "overall macro-economic outlook remains positive". According to her, the minister also assured IMF that machinery has been set in motion to secure timely delivery of the 2010 budget.

"He informed the IMF team that the annual budget cycle consultations through the Medium Term Strategy Session (MTSS) and the Medium Term Expenditure Framework (MTEF) leading to the preparation of the budget have been concluded. The Minister said that the main fiscal challenge had been dwindling revenues and weak absorptive capacity of the MDAs in fully utilizing funds released to them for capital projects", she said.

According to her, the minister said that government had already embarked on various measures to address the situation "including the setting up of a Cash Management Committee to prioritize government spending with special focus on the Seven-point Agenda."

http://allafrica.com/stories/200907201402.html

America is in debt to the tune of trillions so why is our own debt a bid deal. We are rich and still very rich in Nigeria. Make una no shake, pepper till dey.

hmmm

People should stop comparing Americas debt with Nigerias.
America is sponsoring terrorism wars with billions of dollars in a month.

America still sends aids to Nigeria.

What do we do with our own Money? Just to better the lives of people and we only succeeded in bettering the lives of big-belly Politicians.

Sam Milla:

People should stop comparing Americas debt with Nigerias.
America is sponsoring terrorism wars with billions of dollars in a month.

Sponsoring terrorism wars? Against who? What an excuse.

Sam Milla:

America still sends aids to Nigeria.

And makes 10000 times what it sends as aids to Nigeria.

In any case we don't need aids from anyone. We agree that we have serious leadership problems in Nigeria.

@topic,

OBJ cleared our debts and today we are borrowing again. Wonderful. Sometimes I wonder if a 3rd term wouldn't have been better for Nigeria.

Afam:

Sponsoring terrorism wars? Against who? What an excuse.

And makes 10000 times what it sends as aids to Nigeria.

In any case we don't need aids from anyone. We agree that we have serious leadership problems in Nigeria.

@topic,

OBJ cleared our debts and today we are borrowing again. Wonderful. Sometimes I wonder if a 3rd term wouldn't have been better for Nigeria.

Afam wait here,

Is it very difficult for you to accept the truth? Does it matter which people they are fighting in this context ?
The isuue is they are fighting wars, so you only have to accept that fact. (unless you have hatred for them)

And makes 10000 times what it sends as aids to Nigeria.

What a lame comment from a Man of Your Intelligence

Isnt that called Business.
They never robbeed your bank or oil. They buy them.

Fhemmmy:

Cleared ko, Cleared ni

Black_Revo:

The last one just borrowed went into fighting malaria check the first passage of the post.

And another round please. one for each year ( yar adua is in his second year now)

Good morning sorry this is yar adua's regime

Tell him ooo jare, Let me even put it well.

It was cleared but was not stopped from further growing up.

Then I am forced 2 say this,NIGERIA IS DOOMED

yara

should face stoning in shaira , ,

Sam Milla:


Afam wait here,

Is it very difficult for you to accept the truth? Does it matter which people they are fighting in this context ?
The isuue is they are fighting wars, so you only have to accept that fact. (unless you have hatred for them)

Maybe I failed to make myself clear. Who is lending these monies that they keep borrowing?

Who will not afford the basic things of life if he/she can access unlimited loans that may never be paid back?

There are people 9not just government) in the US that keep borrowing money until they die without repaying the money.

Do you think a lot of Nigerians will be complaining today if the government can afford to borrow trillions of dollars and Nigerians can access loans 9never mind if they will pay back or not) to buy food, houses, cars, electronics etc?

Sam Milla:

What a lame comment from a Man of Your Intelligence

Isnt that called Business.
They never robbeed your bank or oil. They buy them.

I agree it is business that is why we should stop collecting the aids and more importantly why they should stop deceiving people with such aids.

We need access to fair trade not aids. Those at the WTC will always come up with policies to defend and protect the products of the developed nations while making it difficult for the developing nations to do business on a level playing field.

This is not a blame game against the West neither is it an excuse for the purposeless leadership we have in this country based on the reality today. I am just pointing out some reasons why the West may be seen as doing well as regards access to unlimited loans and insincerity in trades.

philip0906:

Then I am forced 2 say this,NIGERIA IS DOOMED

But not beyond redemption if well all come to together to save it. 2011 is ahead of us please lets vote responsible people to govern us.