The House of Representatives on Tuesday revealed that China Development Bank, has rejected a loan request of $973,474,971.38 from Nigeria.
According to The PUNCH, this came after the National Assembly of Nigeria approved spending an extra $22,798,446,773 on infrastructure despite a loan rejection from the China-Exim Bank.
The chairman of the House Committee on Rules and Business, Abubakar Fulata, made a proposal to alter the legislative body’s resolution approving the unsuccessful loan transaction.
The motion was titled ‘Rescission of the 2016–2018 Federal Government External Borrowing (Rolling) Plan.’
Moving the motion, Fulata said, “The House notes that the 2016–2018 Federal Government External Borrowing (Rolling) Plan was approved by the Senate and the House of Representatives on March 5, 2020, and June 2, 2020, respectively.
“The House recalls that the National Assembly approved the sum of $22,798,446,773 only under the 2016–2018 Medium Term External Borrowing (Rolling) plan. The House is aware of the communications from the Federal Ministry of Finance requesting approval of modifications to the financing proposal for the Nigerian Railway Modernisation Project (Kaduna–Kano segment) occasioned by the COVID–19 pandemic, whereof China Exim Bank withdrew its support to finance the project.”
He added, “The House is also aware that to secure funds for the project, the contractor (CCECC Nigeria Limited), in collaboration with the Federal Ministry of Transportation, engaged China Development Bank as the new financier in the sum of $973,474,971.38 only.”
As a result, Fulata requested that the House “rescind its judgment on the financier and harmonised terms and allow the change of financier from China Exim Bank to China Development Bank.”
The prayer was granted unanimously by the house.