The African Development Bank, AFDB, on Friday approved the Federal government’s request for a loan of $134 million to assist the administration’s effort in boosting food production.
Newsonline reports that the $134 million, (55,572,480,000 billion) loan approval by AFDB, has again increased the debt rate of the country under President Buhari administration.
The loan will support fast-tracking of the implementation of key policy and institutional reforms and boost private sector participation in agriculture in the country.
The approval for the loan was disclosed in a statement by AFDB communication head, Kwasi Kpodo, who stated that “This will help increase cereals and oil grains production by 7 million tonnes to 35 million tonnes. It will also increase average cereal yields from 1.42 tonnes to two tonnes per hectare during the September 2022-December 2023 implementation period.”
According to Kwasi Kpodo, the board of directors of African Development Bank, AFDB, approved the loan of the Federal government for its National Agriculture Growth Scheme – Agro Pocket programme in Nigeria to help scale up food production and boost livelihood resilience.
President Muhammadu Buhari administration has been criticized for rising debt profile of the country since he came to power.
The country’s debt profile has risen to $100,069.89 million in the first quarter of 2022 from $95,779.64 million in the fourth quarter of 2021.
Reports suggest the Federal government uses about 98% of the country’s revenue for debt servicing.
Nigeria, Africa’s most populous nation, is projected to hit 402 million by 2050 from 206 million people in 2020, making it the third-most populous country globally.
The bulk of its rural population, representing 48 per cent of the populace, produces up to 90 per cent of the national output.