Osinbajo Writes House, Seeks Inclusion of $1.28bn External Borrowing for DBN, FAFIN-II
By James Emejo in Abuja
The acting President Yemi Osinbajo has written to the leadership of the House of Representatives requesting consideration and approval of the House to accommodate fundings for both the Development Bank of Nigeria (DBN) and the second tranche of the Fund for Agricultural Finance in Nigeria (FAFIN-II) in the 2016-2018 external borrowing plan.
In the correspondence, read at plenary by the Speaker of the House, Hon. Yakubu Dogara, Osinbajo noted that the DBN is a multi-donor supported bank approved under the previous administration with financing agreements executed on February 25, 2015.
He, however, explained that the sum of $1.28 billion earmarked for the development finance institution was inadvertently omitted in the 2014 to 2016 external borrowing plan which was approved by the National Assembly.
He said the DBN is currently being supported by the World Bank Group, African Development Bank, KfW Development of Germany and French Development Agency in the sums of $500 million, $450 million, $200 million and $130 million respectively.
Similarly, he said FAFIN-II is being supported by KfW Development of Germany, in the sum of €9 million.
FAFIN is an investment facility in agricultural financing with a commitment of €10.5 million earmarked in its first phase.
More to follow…