Nigerian Governors seek lower interest rate from World Bank

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Nigeria Governors’ Forum is seeking lower interest rates on borrowing from the World Bank

Speaking during a meeting of the NGF and the World Bank on Wednesday NGF Chairman and Governor of Ekiti State, Kayode Fayemi says it would be favourable for states to borrow from the World Bank at one per cent interest than borrowing at 25 per cent commercial lending rate.

“It is important for us to work on that engagement both in terms of the lending operations, in terms of adversary activities, and in terms of the concrete action in our states”, he said.

“There is a question of course of also not having enough resources and the need to expand the lending portfolio from what it is now, both to the federal government and the sub-national entity.

“It is absolutely important that those vehicles are not closed because if we can borrow from the World Bank at one per cent interest, it is always going to be better for us than for us to be borrowing at 25 per cent commercial lending rate.”

Fayemi commended the World Bank for being a major partner of the forum in the development programmes of all the states.

“Some of our states are benefiting from a range of grants, even loans on the basis of the bank’s investments in our states.

“These are with long term moratorium and with low interest over a long period of time to offset those loan portfolios.

Considering the various development programmes like the Better Education Service Delivery for All (BESDA), the ‘Saving One Million Lives’ and others, Fayemi said that World Bank ” is a critical partner we need to work with, in other to improve the quality of life and living conditions of the people”.

 




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