Abuja - President Muhammadu Buhari on
Tuesday sought the approval of the House of Representatives to obtain 200
million U.S dollars loan from the World Bank for Lagos State.
This is contained in a letter to the House of
Representatives written by the President and read by the Speaker, Yakubu
Dogara, during plenary.
According to Dogara, the loan which is for Development
Policy Operation (DPOII) was approved in 2010 by the World Bank and is expected
to be implemented in three tranches per annum.
He said that the first tranche was approved by the National
Assembly in the 2010 to 2012 Federal Government external borrowing plan while
the second tranche was approved in the 2012 to 2014 plan.
Also read: Ambode comes under criticism by PDP over loan | News24
He said that the letter stated that DPO 1 was successfully
implemented by Lagos State government in 2014.
"Following the successful implementation as adjudged by the
World Bank, the bank’s Board of Directors approved the second tranche of the
DPO on April 29, 2015.
"DPO 111 was captured in the Federal Government external
(rolling) borrowing plan of 2014 to 2016 which was discussed with the National
Assembly, but was not concluded,’’ Dogara said.
He solicited the support of the members to facilitate the
consideration and early approval of DPO 11.
"This is to enable the state to consolidate on the gains of
the second tranche of the operation (DPO 11).’’
Similarly, Buhari also requested approval for increase in
the amount to be raised through the Diaspora bond from the international
"This is in line with the Federal Government’s effort to
mobilise capital to finance critical infrastructure in the country,’’ the
It letter stated that the request was crucial in
diversifying Federal Government’s sources of funding and encourage Nigerians in
the Diaspora contribute to the development of the economy.
It added that the reason for the request to increase the
issuance amount to 300 million dollars was to meet the huge capital needed to
bridge the infrastructure gap and ensure growth and development.