By Yemi Olakitan
Loans totalling $3.45 billion have been approved by the Federal Executive Council (FEC) for the implementation of five projects. The council met under the direction of President Bola Ahmed Tinubu on Monday.
The five memos he provided contained conditions for the projects that had been approved, according to Wale Edun, minister of finance and coordinating minister of the economy, who spoke at the conclusion of the meeting.
According to Edun, the letters that have been accepted include loans with zero interest from the World Bank and the International Development Association (IDA), the bank’s concessional finance division.
According to him, the electricity and renewable energy sectors were the focus of the funding-approved projects.
The minister also said that funds has been allocated for projects to mobilise resources for the states to use in their attempts to increase internal revenue.
“The council also approved a project for the adolescent girls’ initiative for learning and empowerment,” added Edun.
“It’s a programme to support young girls starting at age 11, when they are in secondary school, and to make sure that at the end of their education, they have one or more marketable skills in addition to their academic achievements.”
He stated that the fifth financing was granted by the council for the women’s initiative.
“This is a separate project. The first one was a huge hit. It was all about providing women more financial power, improving their skill levels, and, of course, allowing them to participate in the banking system.
“The sum of the five loans was N3.45 billion. As you are aware, the tenure is all about 40 years, the moratorium period is about 10 years, and the interest is very low or, in the case of either loans, zero interest, though certain costs would be charged.”
The FEC granted a $1.58 billion borrowing request last week.
A total of $1.5 billion in loans from the World Bank and $80 million from the African Development Bank (AfDB) are requested.