Economy and Business

Why we suspended $22.7bn external loan – FG

The federal government has suspended its $22.7 billion external borrowing plan, the Minister of Finance, Budget and National Planning, Zainab Ahmed, announced.

Recall that the Senate approved $22.7bn loan for the executive arm a few weeks ago. Although controversial, the loan will be obtained from six external sources including the African Development Bank (AFDB).

On Monday, the minister spoke at the 2020 International Conference on the Nigerian Commodities Market organized by the Securities and Exchange Commission (SEC) in Abuja.

She said the decision to jettison the plan was taken “due to current realities in the global economic landscape.”

She also noted that the effects of the coronavirus disease outbreak are part of the reasons for the new development.

POLITICS NIGERIA reported how the outbreak has claimed lives across the globe and threatened the global economy.

Meanwhile, Nigeria, which recorded its first case on February 24, has decided to screen visitors entering the country from  China (where the disease originated last year), Japan, Iran, Italy, Germany, France,  South  Korea and Spain.

It should be noted that some African countries like South Africa authorities have denied travellers from those affected countries entry to their country.

Although there have been other cases of the virus, but they proved negative.

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One Comment

  1. Using Corona virus as an excuse for not going ahead with the loan is baseless excuse. They should please analyse why we need the loan and give us a cogent reason why the loan is stop. I dont buy that excuse.
    I might not be in government to know what they are doing, but I believe we do not need the loan as at the time they are asking for the loan. Now that they are stopping the loan, when it will be useful.

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