The Federal Executive Council (FEC) has granted approval for a substantial $3.45 billion World Bank loan aimed at financing various projects in the country, with a strong focus on bolstering the power sector. Mr. Wale Edun, who serves as both the Minister of Finance and Coordinating Minister of the Economy, made this significant announcement during the FEC meeting in the nation’s capital, Abuja.
Edun confirmed that the council unanimously sanctioned the loan request during its session at the State House. This approval means that the Federal Government is poised to access the $3.5 billion “zero-interest” loan. It was elucidated that this loan carries a lengthy repayment period spanning 40 years, with an initial 10-year moratorium, implying that actual repayments will commence from 2033.
Speaking to State House Correspondents, Minister Edun said, “Today at the Federal Executive Council, I presented five memos which were gracefully approved by the Council. They had to do with concessional and, in many cases, zero-interest financing by the World Bank and the International Development Association, which is the very concessional financing arm. The projects that were approved for funding were in the power sector and the renewable energy sector. There was funding for states for resource mobilization programs to support their internally generated revenue efforts. Additionally, a project was greenlit for the Adolescent Girls’ Initiative for Learning and Empowerment. Finally, the fifth financing approved was for women’s projects.”
Edun further explained, “So, those were five loans totaling $3.45 billion. And as you know, the tenure is all around 40 years, with a moratorium period of around 10 years and interest very low, or in the cases of either loans, zero interest. However, some fees would be incurred.”
In a related development during the briefing, the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, announced that the FEC has granted approval for the establishment of a Humanitarian and Poverty Alleviation Trust Fund. This fund will facilitate the Federal Government’s swift response to humanitarian crises within Nigeria, with the government aiming to amass at least $5 billion annually to support its objectives.
