Federal government has approved that Nigeria borrows the sum of $945 million from the International Development Association, IDA, an arm of the World Bank, for irrigation and drainage projects.
This was made known by the minister of state for finance, Bashir Yuguda, on Wednesday, November 5, 2014 in Abuja.
According to Yuguda, “the borrowing consists of $495 million for irrigation projects in states including Kano, Sokoto and Zamfara; $250 million for urban water projects in Bauchi, Ekiti and Rivers states; and $200 million to improve drainage in Ibadan, Nigeria’s third-biggest city.”
He also added that the loan is repayable in 20 years and it comes at an interest rate of 1.25 percent and a service cost of 0.75 percent.
“With irrigation Nigeria will have capacity for a “year-out year-in farming season,” he said.
He submitted that Nigeria is seeking to expand her agricultural output so as to reduce dependence on oil exports, which account for more than 70 percent of government revenue.
“Agriculture employs more than 60 percent of the population which represents about 22 percent of the gross domestic product, according to the National Bureau of Statistics,” he added.
