The Islamic Development Bank (IDB) has approved about $17.32 million (about N2.583 billion at N149.14 to $1) loan for the construction and rehabilitation of equipment in four Senior Science Secondary Schools in Kaduna State.
The agreement was signed at the weekend in Abuja between Mansur Muhtar, the Minister of Finance, and Ahmad Mohammed Ali, the IDB President, who was represented by Birama Sidibe, the bank's Vice President (Operations).
Boosting science and technology
After signing the agreement, Mr. Muhtar, who signed on behalf of the federal government, said the objective of the project was to increase the population of science graduates from senior secondary schools in order to produce the necessary workforce that would be required in engineering, medicine, computer and science education for the future development of Kaduna State in particular and Nigeria, in general.
According to the minister, out of the total estimated cost of about $21.13 million for the project, the IDB Loan represents 82 percent, while the Kaduna State government would provide the balance of $3.81 million as counterpart fund.
Terms of the loan
Mr. Muhtar said the IDB loan, was an interest-free package with an amortisation period of 25 years and a grace period of seven years, apart from a service fee not exceeding two percent of the total loan calculated on an annual basis to cover actual administrative expenses.
"The Loan would be on-lent to Kaduna State, on the same terms and conditions offered by the bank to the federal government, while a subsidiary loan agreement shall be executed with the state government for this purpose," the minister said.
He reiterated the government's commitment to improving science and technology education in the country in order to take advantage of the emerging opportunities in the 21st century towards the development of the national economy.
He added that IDB, which is already co-financing the National Programme for Food Security, to the tune of about $30million, has been found to be a worthy collaborator in national development.
Mr. Muhtar reaffirmed Nigeria's shared interest in partnering with the Islamic bank in the provision of critical development infrastructure in the areas of power, gas development, railway and agriculture. He said Nigeria was ready to contribute about $4billion, as counterpart funding to leverage its funding sources, to consolidate her interest in receiving a $10billion funding package being proposed by the bank for infrastructure development.
Partners in national development
Speaking on behalf of the Islamic Bank, Mr. Sidibe, said the bank would continue to cooperate with Nigeria in its effort toward national development. He said a delegation from the country led by Tanimu Yakubu Kurfi, the Chief Economic Adviser to the President, recently held useful discussions on the economic priorities, particularly in the context of the seven-point agenda of the present administration as well as the Vision 20-2020, designed to make Nigeria one of the world's leading 20 economies by the year 2020.
He identified education as a high priority towards the realisation of these national objectives, reaffirming the commitment of the bank to contribute, not only to the development of this critical sector, but also others significant to the achievement of overall national aspirations.
The Kaduna State governor, Namadi Sambo, noted that the loan would go a long way in helping to fulfil the goals of President Umaru Musa Yar'adua's seven-point agenda, adding that his administration was already working with the bank to secure another funding package for the next phase of its programmes in the health sector, which he hopes to get the necessary approval by December this year after the completion of all necessary due diligence.
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