Nigerian Government Sanctions $618M Loan For Fighter Jets And Ammunition

The Federal Executive Council (FEC) approved a loan of about $618 million from a group of lenders to buy six fighter aircraft and ammunition for the Nigerian Air Force.

The FEC also approved N740 billion for the Berger section of the Abuja-Kano Road, along with other important road projects. Minister of Information and National Orientation Mohammed Idris made this announcement in Abuja on Wednesday, after the FEC meeting led by President Bola Tinubu.

Idris, speaking on behalf of the Minister of Finance and Coordinating Minister of the Economy Wale Edun, said he would share the details of the FEC approvals since Edun was currently on official duty in the United States.

"The first one is that there have been approvals for some contracts, about seven of them for the Nigerian Customs Service," Idris said, Punch reported.

"The next one is that there's an approval for an agreement for the elimination of double taxation with respect to taxes on income and prevention of tax evasion and avoidance between the Federal Republic of Nigeria and the Hong Kong Special Administrative Region of the People's Republic of China."

The third approval was for a credit facility of €443,330,781.49 and an additional $141 million from a group of lenders to purchase six M346 fighter aircraft and ammunition for the Nigerian Air Force.

The last approval from the Federal Ministry of Finance was for an agreement to eliminate double taxation on income and to prevent tax evasion and avoidance between Nigeria and Botswana.

Earlier this month, the Air Force announced that it was acquiring 24 M-346 combat jets and 10 AW109 Trekker helicopters as part of a plan to update its fleet. The first three M-346 jets were expected to be delivered by early 2025, with additional deliveries continuing until mid-2026.

During the press briefing, it was also announced that the FEC had approved the creation of the Creative Economy Fund to help develop the sector.

The minister of Arts, Culture, Tourism, and Creative Economy, Hannatu Musawa, informed State House reporters that the council approved the fund's establishment.

She explained that the FEC approved the creation of a Creative Economy Development Fund, which will help people in the creative industry access funding and use their intellectual property as collateral for monetization.

Minister of Works Dave Umahi explained how the government planned to manage the large backlog of infrastructure projects. He announced that the Shagamu-Benin road was being heavily repaired, and the procurement process was being finalized for its complete reconstruction with reinforced concrete pavement.

The Abuja-Kano Road project, which was previously planned to use a tax credit arrangement, will now be procured without that provision. The 162-kilometer Berger section has already been approved for N740 billion.

Umahi mentioned several other projects, including the upcoming construction of the Sokoto-Badagry road, with the Sokoto section set to start soon. Furthermore, he said that work would resume on the Oyo-Ogbomoso Road, which has been on hold for 18 years.