Jennete Ugo Anya
The Federal Executive Council (FEC) has given its nod to a loan request totaling $1.58 billion from World Bank and $80million from Africa Development Bank (AfDB).
This announcement was made by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, following a FEC meeting held at the Presidential Villa in Abuja on Monday, October 16.
The $1.5 billion from the World Bank is designated for application through the International Development Association (IDA), which is a branch of the World Bank providing interest-free or highly concessional loans to low-income countries.
Mr. Edun emphasised that this financing from the World Bank’s IDA is essentially interest-free. He also pointed out the significance of these funds in light of the rising cost of borrowing, as developed countries increase interest rates to combat inflation, making borrowing less affordable.
Mr. Edun attributed the World Bank’s willingness to lend to Nigeria to the tough policies implemented by President Bola Tinubu. These policies have garnered support from the multilateral development bank, enabling the World Bank to process $1.5 billion of concessional financing on Nigeria’s behalf, offering relatively inexpensive and swift disbursal of funds.
In addition to the World Bank loan, the FEC approved an $80 million loan from the African Development Bank (AfDB). This funding is designated for the Ekiti Knowledge Zone (EKZ) project, which aims to provide technological skills to the youth in Ekiti, recognizing the growing contribution of the technology sector to the economy.
