Abuja, Nigeria --- ESI-AFRICA.COM --- 24 October 2011 - The House of Representatives in Nigeria has moved to stop the country’s Federal Government from accessing a US$1.5 billion facility to enable the independent power producers (IPP’s) to purchase equipment and services from the United States.
Coming under matters of national importance, the lawmakers said that taking up the US$1.5 billion concessionary loan from the US would take the country back to the dark days of huge debt burden.
But speaker Aminu Waziri Tambuwal directed the House Committee on Power to make some preliminary investigations and guide the House before debating the matter tomorrow.
Last week the Federal Government entered into an agreement with the US government which would allow Nigeria's independent power plants access to the US$1.5 billion concessionary loan for the acquisition of equipment and services from the US.
A Memorandum of Understanding for the long-term, single-digit interest rate loan was signed here by minister of power Prof. Bart Nnaji on behalf of the Federal Government and US Export Import Bank president Fred Hochberg for the US government.
The facility will be managed by the US Ex-Im Bank, a government agency that provides export-credit insurance and financing, among other services, to help foreign buyers purchase US goods and services.