Congress approved a $300 million loan from the World Bank to support the First Resilient Reconstruction and Development Policy Fund.
This funding is critical to facilitating the government’s implementation of the policies outlined in Budget 2024.
The loan ultimately secured approval, although it initially faced opposition from a minority that made support conditional on the government withdrawing more than $449 million in tax exemption applications.
Finance Minister Mohammad Amin Adamu promised the minority promise to review the tax exemption application within two weeks, leading to final approval of the loan.
Speaking in the House of Commons, the Finance Minister said: “Mr. Chairman, let me take this opportunity to clarify some issues. First of all, this is a World Bank facility, not an IMF facility. It is a 25-year concessionary facility. There is a 5-year payment period. There is a grace period of , the interest rate is approximately 1.25 percent, and there is a high-value element of 26 percent.”
“It’s been granted, and this house is familiar with its granted facilities. The second thing is budget support. The House has approved financing for the 2024 budget, totaling $61 billion. And this is one of the facilities that we are pursuing to fund the 2024 budget. So, as you already know, the 2024 budget is going to provide resources through this Congress for various projects and programs for that year. assigned.
“I want to assure them that [Minority] Let’s consider these exemptions. I will streamline it, consider it, and come back in two weeks to report to Parliament, but I hope that when I come, Honorable Members of Parliament will support me in any streamlining that we make. hoping. ” he said.
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