Gov briefs Buhari on China’s $4.5bn credit for Agriculture

Gov.

Speaking in Abuja after briefing the president, Yari disclosed that an agreement for the agricultural loans was signed with Chinese government during the State Visit of President Buhari to China in April 2016.

He said that Nigeria has successfully negotiated for a 10 per cent as against the initial 25 per cent counterpart funding for the loan.

“They are supporting us with a credit line of 4.5 billion dollars which will cover the (procurement of) machineries and infrastructure that is rural earth dams, irrigation and interestingly this loan has a 20 years repayment term with five years moratorium.

“Initially we started negotiations to drop a counterpart funding of 25 per cent but understanding the economy of Nigeria, we negotiated to give a counterpart funding of 10 per cent which we believe Nigeria can do.

“We are targeting the natural resources fund for the counterpart funding.

“That’s why we are now speaking with the Chinese group and the Nigerian governors and the technical committee that was set up by Minister of agriculture and Rural Development.

“So, we have now come to a stage where the President needs to come in so that he can give us a leadership role and a kind of approval of a certain level so that we can forge ahead.

Yari, who briefed President Buhari alongside the Minister of Agriculture, Chief Audu Ogbeh, said that the machineries would transform the nation’s agricultural sector and diversify the economy.

He said that President Buhari has directed the state governments to engage the Ministers of Finance, Budget and National Planning and the Central Bank Nigeria to conclude the negotiation.

He said that Ogbeh would make presentation on the loan to the Federal Executive Council before passing it to the National Assembly for final approval.