The Federal Executive Council on Wednesday formally approved that the proposed plan by government on the issuance of $2.9 billion Eurobond and other securities from the international capital market should be implemented.
The Minister of Finance, Zainab Ahmed, disclosed this to State House correspondents at the end of the council’s weekly meeting at the Presidential Villa in Abuja.
She explained that the $2.9 billion Eurobond provided for in the 2018 Appropriation Act was meant to finance capital projects of the budget, adding that N374.618m was also approved as payment for the transaction partners.
Ahmed clarified further: “Today (Wednesday), in the Federal Executive Council, we got approval for the issuance of $2.9bn and other securities in Eurobonds from the international capital market and the focus of this approval is to enable us implement the external borrowing plan of N849.67bn equivalent of $2.786bn, which is provided for in the 2018 Appropriation Act, and this is to fund capital projects in the 2018 budget.
“We also, as part of that, got approval to raise the sum of $82.54m to bridge the shortfall of the $500m Eurobond that matured on July 12, 2018. In addition to this approval for the issuance of the Eurobond, we also got the approval for payment to transaction parties 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”, she added.
The minister stated that the council approved also the sum of $60 million in form of loans and grants for the Livelihood of Family Improvement Project in the Niger Delta, also called Life and D.
According to her, the projects will be implemented in Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers states.
Ahmed explained that when the FEC reviewed the project in the nine states, it found that six of the states met the criteria for accessing the fund, while three did not, adding that the three will be assisted to enable them improve and join the team next year.
The minister recalled that about two weeks ago, N460 billion was released for capital projects in the 2018 budget.
On Paris Club refund, the minister hinted that the President had approved the payment of the last tranche to the states with some conditions now being worked out with the states.
She said: “Those conditions that Mr President gave are that we must show that the states have used the previous refunds 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, because they had some deficiencies and the agency that is handling it is working to bridge the gap”, Ahmed added.
She pointed out that the approval given by the President on the entitlements of the defunct Nigeria Airways’ former workers was for 50 percent of their outstanding claims.
While expressing optimism that the balance will be approved in the 2019 fiscal year, Ahmed hinted also that the council approved N187 million for the procurement of 600 bulletproof vests and helmets for the Nigeria Customs Service (NCS) to strengthen the fight against smuggling into the country.
