FG Approves $2.57bn Loan For Gas Project

Federal Executive Council

Federal Government has on Wednesday approved a memo for the issuance of $2.57bn Sovereign guarantee bond for the Ajaokuta- Kaduna- Kano gas pipeline project.

The approval was given during the Federal Executive Council -FEC meeting presided over by President Muhammadu Buhari at the State House, Abuja.

Minister of Finance, Mrs. Zainab Ahmed who disclosed this while briefing newsmen on the outcome of the meeting said the memo was jointly presented by her ministry and that of petroleum resources. 

The minister explained that NNPC would provide 15 percent of the contract amount while the 85 percent would be provided by Sinosure of China in the form of a loan facility with a sovereign guarantee. 

According to her, an extensive review of this project shows the cash flows from the Ajaokuta-Kaduna-Kano gas pipeline will be sufficient to repay the facility. 

The Minister however did not say when the project will eventually take off, but said the timeline for the project will be revealed when it is formally signed.

On his part, the Minister of Science and Technology, Dr Ogbonanya Onu said United States was currently conducting tests on a ‘chemical compound’ isolated by a former Chairman of the Independent National Electoral Commission, Prof Maurice Iwu, as a possible cure for Covid -19.

He dismissed reports suggesting that Iwu had found a cure for Covid -19, adding that Iwu’s initial finding was that the compound could cure SARS, a strain of Covid -19.


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