FEC Approves $3.45 Billion Loan Application For 5 Projects

Federal Executive Council (FEC) approved a $3.45 billion loan application on Monday to financially support five projects that concern the power and renewable energy sectors, the states' resource mobilization programs, girls' education and women empowerment.

Wale Edun, minister of finance and coordinating minister of the economy of Nigeria, said the federal government is all set to receive a $3.5 billion loan from the World Bank for 40 years with a 10-year moratorium, which means the government will start repaying the loan starting in 2033.

"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," Edun said, as per Punch.

"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," he added.

Edun also shared that out of five, one project will be for an initiative centering on girls' learning. Also included on the list of projects is one focused on the empowerment of women.

The minister further shared that $700 million will be allocated to the program for girls to ensure that beneficiaries will acquire marketable skills on top of their academic achievements.

While the interest rate of the loan will be either zero or very low, some "fees" for taking the loan from the World Bank will reportedly be imposed.

Tahir Mamman, minister of education of Nigeria, disclosed that the girls' program, which was initially in seven states, will now be expanded to 11 states.

"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," Mamman said.

"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.

FEC also approved building a Humanitarian and Poverty Alleviation Fund to raise $5 billion every year for humanitarian crises.

Betta Edu, minister of humanitarian affairs and poverty alleviation, said this fund will be raised from private sectors, government and contributions from development partners and individuals.