The Federal Government on Tuesday sough approval from the National Assembly for its intention to borrow $7.9 billion from the World Bank, African Development Bank, Islamic Development Bank, EXIM Bank of China and Indian lines of credit.

The intention was conveyed in separate letters to the Senate and House of Representatives by President Goodluck Jonathan.

The President indicated that the funds would be used to cover pipeline projects in the 2012-2014 External Borrowing Plan.

Under the plan, government will borrow $2.64 billion annually.

More details later.

http://www.punchng.com/news/fg-to-borrow-7-9bn-from-world-bank-adb-others/

I really hope this is not true, I mean you got to be freaking joking me (as my eastern brothers would say)

from 60 billion dollar excess by OBJ to debts by borrowing now !!!

I hope this is a lie o for the sake of sanity !!!

Maybe those with more knowledge on this issue of economics can explain more to me unless I am confused and mixing things up. I am willing to learn.

Reality 101 . . . Very harsh indeed.

where is Mrs Iweala? I thought no more debt after the Paris exit. What happened to fiscal discipline?

What pipelines?

Sometimes, I laugh when I read some contributions of peeps to issues that they have no basic knowledge of. Borrowing to fund projects (that will be implemented) remain the best option to path of development. For instance, govt at all levels do not have sufficient financial capacity to give us stable electricity. To generate 1MW of power require an investment of about 310. 0 million naira. So, tell me where the FG, States & "+cal govt will get money to give us 50K MW if govt refuses to borrow. Borrowing in itself is good if the money borrowed is used for its intented purpose and not diverted to private pockets.

okeymadu:

Sometimes,  I laugh when I read some contributions of peeps to issues that they have no basic knowledge of. Borrowing to fund projects (that will be implemented) remain the best option to path of development. For instance, govt at all levels do not have sufficient financial capacity to give us stable electricity. To generate 1MW of power require an investment of about 310. 0 million naira. So, tell me where the FG, States & "+cal govt will get money to give us 50K MW if govt refuses to borrow. Borrowing in itself is good if the money borrowed is used for its intented purpose and not diverted to private pockets.

my guy wetin u yarn 4 make sense if to sey pple wey dey "rule" ds country dey "civilized".
government wey dey live "XTRA-LARGE" wan borrow money 4 projects?!?!?!
***i smile in monkey style***

okeymadu:

Sometimes, I laugh when I read some contributions of peeps to issues that they have no basic knowledge of. Borrowing to fund projects (that will be implemented) remain the best option to path of development. For instance, govt at all levels do not have sufficient financial capacity to give us stable electricity. To generate 1MW of power require an investment of about 310. 0 million naira. So, tell me where the FG, States & "+cal govt will get money to give us 50K MW if govt refuses to borrow. Borrowing in itself is good if the money borrowed is used for its intented purpose and not diverted to private pockets.

maybe you don't get it unless I am wrong in the way I am seeing things, I love borrowing when needed myself

if we had no excess, the borrowing is good

if we had excess then borrowing is bad

if it a case of

You still have food in the house but you are begging for food outside

Unless the food has finished, Then maybe the government has to explain to us how 60 billion dollars finished within 5 years .

Unless there were different accounts of Money and maybe you can explain how that works to us.

Nigerians don't need to undastand the economics becos the govt has not given them a reason to. Why should I believe the money will be used properly when history has proven otherwise. These govt would continu to lie about their intentions becos it works perfectly. Just tell nigerians u nid a trillion dollars to make our universities or hospitals world class, we will just clapp without asking wat hap to previous funds. These govt wud love to see us underdevelop becos it is a perfect excuse to ask for more money to develop it. God help us.

alj harem:

maybe you don't get it unless I am wrong in the way I am seeing things, I love borrowing when needed myself

if we had no excess, the borrowing is good

if we had excess then borrowing is bad

if it a case of

You still have food in the house but you are begging for food outside

Unless the food has finished, Then maybe the government has to explain to us how 60 billion dollars finished within 5 years .

Unless there were different accounts of Money and maybe you can explain how that works to us.

LOL. Ok. let me break it down like this.

Do you expect government to finish its treasury before borrowing? Mind you, borrowing is not done because you don't have money rather it is done to ease pressure, enabling one to meet its responsibility while capital projects are not hampered due to lack of money to execute them.

The American government has money but still has to borrow to funds certain aspect of its economy.
I tried to break this down to a level everyone outside of financial industry can understand.

la furia:

Nigerians don't need to undastand the economics becos the govt has not given them a reason to. Why should I believe the money will be used properly when history has proven otherwise. These govt would continu to lie about their intentions becos it works perfectly. Just tell nigerians u nid a trillion dollars to make our universities or hospitals world class, we will just clapp without asking wat hap to previous funds. These govt wud love to see us underdevelop becos it is a perfect excuse to ask for more money to develop it. God help us.

Well, I am not a GEJ apologist, but I owe it to explain certain actions of government I understand.

I think the law enabling one to request information from government agencies had been passed is the FOI bill or something. You can request for information on what the money is meant for. The legislative arm, I know has men of timber and caliber, I expect them to request for detailed intended use of the loan being sought.

I hope this answers your concern.