In a recent decision, the Federal Executive Council gave the green light to a $3.45 billion loan application, aimed at funding vital initiatives. These projects encompass the power sector, renewable energy, states’ resource mobilization program, adolescent girls’ education and empowerment, and a women’s empowerment project.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed that the federal government is set to receive this “zero-interest” loan, which comes with a repayment period of 40 years and a 10-year moratorium. This means that repayments are scheduled to commence in 2033.
Edun reported, “Today at the Federal Executive Council, I presented five proposals that were unanimously approved. These proposals involve concessional and, in many cases, zero-interest financing from the World Bank and the International Development Association, the highly concessional financing arm.”
The approved projects include investments in the power and renewable energy sectors, financial support for states to boost internally generated revenue, funding for the adolescent girls’ education and empowerment program, and resources for a women’s empowerment project.
The $700 million allocated to the girls’ program is intended to equip young girls of secondary school age with practical skills alongside their academic achievements.
Edun explained the funding in detail, saying, “The total funding for these projects amounts to $3.45 billion. The loan tenure extends to approximately 40 years, featuring a 10-year moratorium and very low interest rates, or in some cases, zero interest. However, there may be some associated fees.”
Further elaborating on the girls’ program, Minister of Education, Dr. Tahir Mamman, stated that it initially began in seven states but has now expanded to cover 11 additional states. This expansion aims to empower girls aged 10 to 20 in the participating states, aligning with the government’s mission to reduce the number of out-of-school girls and children.
Additionally, the Federal Executive Council granted approval for the establishment of the Humanitarian and Poverty Alleviation Fund. This fund seeks to generate $5 billion annually for rapid responses to humanitarian crises. Dr. Betta Edu, the Minister of Humanitarian Affairs and Poverty Alleviation, disclosed that the funds would be sourced from government contributions, contributions from development partners, the private sector, and individuals, among other sources.