During the last Federal Executive Council (FEC) meeting in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced the approval of a $3.45 billion World Bank loan application aimed at financing various projects in Nigeria.
The FEC endorsed the loan request, marking the beginning of the Federal Government’s access to this significant financial resource, characterized by a “zero-interest” rate. The loan is structured for repayment over a 40-year period, including a 10-year moratorium, which implies that repayments will commence in 2033.
Mr. Edun explained, “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 approved funds are designated for multiple sectors, including power and renewable energy projects. Additionally, financial assistance will be extended to states for resource mobilization initiatives to enhance their internally-generated revenue. The financing also encompasses a project aimed at empowering and educating adolescent girls, as well as a women’s empowerment project.
The loan terms offer a lengthy tenure of approximately 40 years, combined with a considerable moratorium period of around 10 years, with very low interest or, in certain cases, zero interest. Nevertheless, the Minister noted that some associated fees would be incurred.
Furthermore, during the FEC briefing, the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, disclosed the council’s approval for the establishment of a Humanitarian and Poverty Alleviation Trust Fund.
