BUSINESS

Reps member protests unscrutinised $973m loan approval

Hon. Nicholas Ossai, (PDP-Delta), has protested the House of Representatives’ decision to overlook federal government’s refusal to disclose the conditionality attached to the approved $973,474,971.38 loan.

The legislature, on Tuesday, approved the loan from China Development Bank (CDB) for financing of the Kaduna–Zaria–Kano rail project.

The government, alongside CCECC Nigeria Limited–the project contractors decided to approach CBD after China-Exim Bank from which it earlier sought $22.8bn loan snubbed it.

While stating his disavowal, Ossai said that minister of finance (budget and national planning, Zainab Ahmed ought to disclose the conditionality so as to guide representatives.

“I believe that this motion should be stepped down while we ask the relevant authorities to forward all the agreements as agreed with China Development Bank,” he said.

However, the speaker, Hon. Femi Gbajabiamila (APC-Lagos), overruled Ossai and, instead, decided to put the loan request to a voice vote that saw members unanimously acceding to it. The commercial loan has a 15-year maturity, at an interest rate of 2.7%, commitment fee of 0.4%; and upfront fee of 0.5%.

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