The Senate approves a new Chinese bank for a $23 billion railway project

On Tuesday, the Senate reversed its decision to change the financier of the country's Kaduna-Kano railway project from the China Exim Bank to the China Development Bank and harmonised the terms of the Federal Government's 2016-2018 external borrowing plan. The National Assembly approved a $22,798,446,773 loan for the Kaduna-Kano railway modernization project in 2020. The red chamber also approved the harmonised term sheet's relevant conditions. The terms include the Kaduna-Zaria-Kano segment, China Development Bank as the financier, a 15-year maturity with a 2.7 percent interest rate and a six-month Euribor interest rate, as well as a 0.4 percent commitment fee and a 0.5 percent upfront fee, respectively. These resolutions followed a motion sponsored during plenary by Senator Sadiq Umar (APC Kwara North). Senator Umar introduced the motion, stating that the "2016-2018 federal government external borrowing (rolling) plan was approved by the Senate and House of Representatives on March 5, 2020, and June 2, 2020, respectively." He also recalled that "under the 2016-2018 Medium Term External Borrowing (Rolling) plan, the National Assembly approved the sum of $22,798,446,773 (twenty-two billion, seven hundred and ninety-eight million, four hundred and forty-six thousand, seven hundred and seventy-three United States Dollars)."