Nigeria Approves $2.96bn, €200m, N215bn to Boost Economy
Nigeria’s Federal Executive Council (FEC) on Monday approved financing packages worth billions of dollars and naira. The funds are targeted at transportation, agriculture, power, infrastructure and micro, small and medium-sized enterprises.
The approvals were announced by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
Oyedele spoke on Monday while briefing State House Correspondents after the FEC meeting presided over by President Bola Tinubu. He said the Council considered 14 memoranda presented by the Finance Ministry during the meeting.
The minister grouped the decisions into five strategic areas supporting the administration’s Renewed Hope Agenda. “For Council, we made very strategic decisions, which I have categorised under five headings,” Oyedele said.
He explained that the areas covered transportation, agriculture, power, infrastructure and support for small businesses. According to him, the measures were designed to stimulate economic growth and improve national productivity.
FEC approved N215 billion for completing investments under the Presidential Compressed Natural Gas Initiative. The fund will support buses, electric vehicles, tricycles and CNG conversion centres across the country.
“The first approval focuses on transportation and how to reduce its cost,” Oyedele stated. He added that the investment would complete remaining projects under the CNG initiative.
The minister also announced $900 million financing arrangements for agricultural development nationwide. The funding will support rural technical training and Special Agro-Industrial Processing Zones.
It will also strengthen agricultural value chains, processing capacity and value addition. “Altogether, we have different financing arrangements amounting to 900 million U.S. dollars,” Oyedele said.
He noted that the facility would improve agricultural productivity and support farmers. FEC further approved a $160 million financing package for rural solar development projects. The facility comprises $150 million from the Islamic Development Bank and $10 million counterpart funding.
The counterpart contribution will come from Niger to support renewable energy projects in the state. “This facility will expand access to renewable energy in underserved communities,” Oyedele said.
The Council also approved a $1.2 billion financing facility for the Sokoto–Badagry Super Highway. The funding is expected to support Section-2 of the major infrastructure project.
Oyedele said the highway would improve connectivity, logistics and economic activities. He described the corridor as a strategic project covering 11 states across Nigeria. The minister said the road project would unlock economic opportunities and strengthen national integration.
FEC equally approved €200 million and $500 million financing through the Development Bank of Nigeria. The funds will provide affordable credit for micro, small and medium-sized enterprises.
Oyedele said supporting small businesses remained crucial to economic development. “We must continue to support small businesses because supporting them is supporting ourselves,” he said, adding that the financing would improve MSMEs’ access to affordable credit.
The minister said the approved packages reflected government’s commitment to expanding investments. He noted that the initiatives would create opportunities and support sustainable economic growth Naira Falls as Nigeria’s Bonny Light Crude Plunges by 11%
