The Federal Executive Council on Monday approved the application for a $3.45bn loan to finance five items.
They include projects in the power sector, renewable energy, states’ resource mobilisation programme, adolescent girls’ initiative for learning and empowerment and a women’s empowerment project, as revealed by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a FEC meeting in Abuja.
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According to him, the loan is payable within 40 years with a 10-year moratorium which means payments would start from 2033. “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,” he told State House Correspondents.
“The projects that were approved for funding were in the power sector and then the renewable energy sector. There was funding for states for resource mobilisation programmes to help them with the internally-generated revenue efforts.
“There was a project for adolescent girls’ initiative for learning and empowerment. And then finally the fifth financing that was approved was for Women project.”
“So, those were five loans totalling $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,” he added.
Additionally, the FEC approved the establishment of a Humanitarian and Poverty Alleviation Trust Fund to address humanitarian issues in Nigeria and aims to raise at least $5 billion annually for it.
