FG Approves $3.45bn Loan For Key Projects in Power, Others

The Federal Executive Council on Monday has granted approval for a $3.45 loan application, allocated to fund various projects.

These projects encompass the power sector, renewable energy, state resource mobilization efforts, an initiative for the education and empowerment of adolescent girls, and a women’s empowerment project.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said that the loan, which carries zero interest and a 10-year moratorium, will be payable over 40 years, commencing in 2033.

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 projects that were approved for funding were in the power sector and then the renewable energy sector. There was funding for states for resource mobilization programs 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.”

The Finance Minister explained that the girls’ program worth $700m would support young girls within secondary school age to equip them with marketable skills in addition to their academic achievements.

Putting a figure to the project, Edun said, “$700m is the size of the current project.

So those were five loans totaling $3.45bn. 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 loans, zero interest. However, some fees would be incurred.”

The Minister of Education, Dr. Tahir Mamman, mentioned that the girls’ program, initially spanning seven states, will expand to 11 additional states.

Mamman said, “Initially, from seven participating states, we will now have about 11 additional states participating in this project, which will lead to the empowerment of girls between 10 to 20 right across the participating states.

“This is a very major escalation of this program that is meant to empower our girls, our teachers, and the provision for additional schools in the country.”

He added that the programs were in line with the Tinubu administration’s agenda to reduce, “if not eliminated,” the number of out-of-school girls and children generally.

Federal Executive Council has given the green light to establish the Humanitarian and Poverty Alleviation Fund, to raise $5 billion annually to address humanitarian crises.

The minister of humanitarian affairs and poverty alleviation, Dr. Betta Edu, disclosed this. Edu said the money would be raised from the government, contributions from development partners, private sectors, and individuals, among others.

Kanyi Daily recalls that some Nigerians on Twitter had reacted to the approval of N6.28 billion given by the Federal Government for the maintenance of the Third Mainland Bridge in Lagos State.