Nigeria gets $90m fresh W/Bank loan

Gbola Subair, Abuja - 06.02.2009

Nigeria has obtained another $90 million loan from the World Bank, thus, bringing the total loans of the bank to the country to $3.2 billion

The latest loan will be spent on provision of health facilities christened Second Health Systems Development Project (HSDPII) in the country.

Speaking at the agreement signing ceremony, the Minister of Finanace, Dr. Mansur Muhtar, said the latest World Bank intervention in Nigeria was to address access to quality health care in rural areas.

Dr. Muhtar said the loan would also be used to complete ongoing projects under the World Bank-assisted Health Systems Development Project, assist the Federal Government in strengthening capacities for management of health systems at the federal and state levels and strengthening policy formulation and further developing a system to monitor the performance of the health sector at the federal level.

Noting that the loan was concessional, repayable in 40 years with a 10-year moratorium, the minister said it was interest-free but attracted a commitment charge of 0.05 per cent annually on the undisclosed amount while a service charge of 0.75 per annum was payable in the amounts withdrawn.

Muhtar said the loan would be lent to the states on same terms and conditions.