FGN approves issuance of N2.9bn Eurobond
The Federal Government has approved the issuance of $2.9 billion and other securities in Eurobonds from the international capital market. The approval was given on Wednesday at the Federal Executive Council (FEC) meeting at the Aso Villa, Abuja. Briefing State House Correspondents after the FEC meeting, Minister of Finance, Mrs. Zainab Ahmed, said “the focus of this approval is to enable us implement the borrowing external plan of N849.67 billion equivalent of $2.786 billion which is provided for in the 2018 Appropriation Act and this is to fund capital projects in 2018 Budget.”
The council also gave the Federal Ministry of Finance the approval to raise the sum of $82.54 million to bridge the shortfall of the 500 million Eurobond that matured on the July 12, 2018. According to Ahmed, in addition to this approval for the issuance of Eurobond, “we also got the approval for payment to transaction parties and their respective fees like settling bills and expenses”. “We have as parties for the transactions, two joint league managers, a combination of Citibank group as well as Standard Chartered Bank as joint league managers and FSB Merchant Bank as financial advisers; the White and Case LIP as legal managers and Ighodalo as legal advisers for Nigeria.
The total cost for this advisory group is N374.618, 889,” the minister said. In addition to this approval of Eurobond, the Federal Executive Council also gave approval for livelihood of family improvement project in Niger Delta in the sum of $60, which is an equivalent of N21.839 billion. “The project is called Life and D. It is in the sum of $60 million (N21.839 billion) that will be a combination of loans and grants.
The projects will be implemented in the Niger Delta states of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers. “However, when we reviewed the project in the nine states, we found that six of the states met their own requirements while three did not. So, the three will be assisted to enable them improve and join the team in 2019,” the minister said. Meanwhile, Minister of Finance said “in respect of the Paris Club, Mr. President has given approval for the payment of the last Paris Club refund to the states but the approval came with some conditions which we are trying to work out together with the states to meet.
“Those conditions that Mr. President gave is that we must show that the states have used the previous refund for payment of salaries and they will use this one also for payment of salaries. “The states that were not paid were Akwa Ibom, Rivers and Imo State because they had some deficiencies and the agency that is handling it is working to bridge the gap.” On the 2018 capital expenditure, Mrs. Ahmed said that the Federal Government has released N460 billion for capital budget, about two weeks ago.
The minister noted that the approval given for payment of entitlements to the ex-staff of Nigeria Airways was N45 billion and because of paucity of funds, Mr. President gave approval for the payment of 50 per cent of N22.6 billion. “We hope in 2019, to pay the balance,” the minister said.
SOURCE: Dailytimes.ng
