The Federal Executive Council (FEC) on Wednesday, February 25, 2015 accented to over $400 Million foreign loans for infrastructure projects to be carried out in Lagos, Ogun, Rivers and Osun States – four states ruled by Governors who are members of the opposition All Progressives Congress (APC).
The council later stressed that the approval of the loans was not directed at wooing the electorates towards voting for the ruling Peoples Democratic Party (PDP), as President Goodluck Jonathan had in the past made a clear distinction between governance and politics.
Jointly addressing State House correspondents after the FEC meeting were Minister of State for Finance, Bashir Yuguda; Ministers of Aviation, Osita Chidoka; Water Resources, Sarah Ochekpe and Education Minister, Ibrahim Shakarau
Yuguda enthused that President Jonathan had no plans pf diminishing his office over tribal or political sentiments as his administration is aimed at developing all parts of the country, regardless of which political party governs the state.
He said: “Like we have been saying over and over again and Like the president is saying over and over again, there is a distinction between governance and politics and president does not bring issues where they are not supposed to be situated.
“Now if we are improving the lives of the people of Port Harcourt or Lagos, these are Nigerians. So President Jonathan is the President of Nigeria. He will not trivialise his office by neglecting one part of Nigeria because they don’t belong to PDP. That is not President Jonathan.
“That is not what president intends to do and it is not what he is going to do if re-elected come March 28. What we are trying to say is that some of the opposition had been talking differently about this kind of approach.
“I can remember two weeks ago, Governor of Oyo State was attacking the Minister of State of FCT,.
“There is no way Lagos State or Rivers state or any of these states can get this facility without the support of the federal government by the president and then through federal ministry of finance.
“You can request for this kind of facility but we give the guarantee and after giving the guarantee the money is not going to you. It comes to us the federal government for lending to you.
“The president has not in any way stopped the ministers from executing or facilitating assistance to any state that deserves it. That is to be on record. If that is the president that Nigeria has today, we would not have brought these issues to council. We can step it down. We can create issues but that is not what we are saying.
“What we are telling the opposition is take us up on issues, not propaganda, not false accusations. If you accuse us constructively as government, we have facts we have figures. We have everything to tell Nigerians that the president is performing, this goes to show that definitely he is detribalized. He is not after projects that go to the states, projects that go the PDP states.
“That is what I am here to confirm and that is what we have just gone through today. President Jonathan wants the welfare of all Nigerians anywhere you are. He is your president and we want all Nigerians to see him as that and reciprocate the kind gesture he has extended to all Nigerians.”
Yuguda also cleared the air on claims that the government was piling up debts for future governments, saying: “Our debt ratio to service is two per cent. Our loans problem are from our domestic loans collected by states not international loans by the federal government. All the loans approved today are domestic loans, and note that all the projects the loans are to be used for are to generate revenues so they will pay back the loans.
“A breakdown of the loans shows that the council approved the president’s anticipatory approval to obtain $100 million credit from the French Development Agency in support of Lagos Integrated Urban Development Project (Eko-UP).
“The facility is meant to improve living conditions of the most vulnerable urban population of metropolitan Lagos, improve management and treatment of solid waste, strengthen the capacity of Lagos State and implement urban development projects in the state
“The payment period for the loan is 20 years, including seven years moratorium, commitment fee of 0.25 per cent per annum and an appraisal fee of 0.25 per cent.
“The projects has three major components: slum upgrading in the two Local Council Development Authorities (LCDAS) of Ifelodun and Bariga by the state Urban Renewal Authority (LASURA); construction of solid waste management facilities in the state by the state Waste Management Authority (LAWMA) and providing capacity building and technical assistance for LASURA, LAWMA, Project Management Unit and the two LCDAs.
“Council also ractified president’s anticipatory approval of African Development Bank (AfDB) credit facility in the sum of $200 million for the proposed Port Harcourt water supply and sanitation project and an African Development Fund (ADF) credit of $5 million to support Urban Water Sector Reform Project.”
