…Seeks fresh $125m Islamic bank loan for Abia road projects
The federal government on Wednesday said plans have begun to settle the ₦4 trillion debts owed Power Generation Companies also known as Gencos.
Wale Edun, the minister of finance and coordinating minister of the economy, revealed this while briefing State House Journalists, after the Federal Executive Council meeting presided over by President Bola Tinubu.
Read also: Tinubu approves N4trn to settle GENCOS debts
Edun stated that he presented a memo on for approval on refinancing the outstanding debt obligations totaling ₦4 trillion.
The proposal may involve raising a bond to pay up the debt, under a refinancing arrangement, which involves paying a debt, with another debt.
This is just as he announced that his Ministry is working on a fresh loan of $125 million for road infrastructure in Aba, Abia state.
The Gencos had earlier raised concerns over the ₦4 trillion debts owed by the government, which they said was affecting their operations.
Edun stated that he presented a memo on government plans to settle the debt, but it was partially approved.
He noted that the implementation which which will be led by the Debt Management Office, DMO and other experts, will however, go on.
“Though the financing plan was not fully approved, we have moved into implementation”, adding that “ the first phase should be completed within three to four weeks,” Edun said.
He affirmed that the proposal will bring significant progress in resolving the debt issue and help to strengthen power supply.
Speaking further on the $125 million Islamic bank loan for the Abia state, Edun noted that the loan will be used to finance a 35 kilometer road in the state capital, Umuahia and another 126 kilometers road in Aba, the commercial nerve center of Abia state.
“I also presented a memo seeking FEC approval for a $125 million loan from the Islamic Development Bank for critical road infrastructures in Abia state,” he said.
Read also: Adelabu seeks Tinubu’s swift intervention on ₦4trn Gencos’ debt
He noted that when fully implemented, the projects will expand road infrastructure AB’s ease movements across the affected communities, in Abia State.
