FG obtains over $1.5bn fresh World Bank, AfDB loans
The Federal Government said on Monday that it has obtained two loans to finance various projects in important economic sectors, one from the African Development Bank for $80 million and one from the World Bank for $1.5 billion.
According to the statement, Nigeria was deemed eligible for the “relatively cheap” loans because of its “macro-economic moves” over the previous several months since President Bola Tinubu took office.
Wale Edun, the Coordinating Minister of the Economy and Minister of Finance informed State House Correspondents that the FG would get $1.5 billion in total before the end of the year if it kept up its end of the bargain.
He explained, “Council approved today the application for financing from the World Bank. And in particular, the International Development Association, which is the virtually free or zero-interest lending arm or financing arm of the World Bank.
Edun clarified that Nigeria took macroeconomic moves and tough decisions to restore balance in its economy, warranting support from multilateral development banks.
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And it comes in one go. It doesn’t drip as will be done for a project and is to support the reform effort. And that was what was presented to the Federal Executive Council, and the members approved that we go ahead with that financing given that it is affordable,” said Edun.
The former Lagos Finance Commissioner said lags would exist between the cause and effect of the recent reform.
Although some effects are in place, such as the relative reduction in smuggling and rising domestic production in some areas, ‘it takes time before the full benefits are in,” he noted.
The Finance Minister also revealed that the Council approved $80m financing from the African Development Bank.
He explained, “This financing is for a project in Ekiti called the Ekiti Knowledge Zone Project. EKZ is basically to support young people and their quest to take on technology to use it to be employed, trained, and benefit from being part of the knowledge economy, being part of the technological wave that is present very much in Nigeria, which is becoming a bigger and bigger share of the economy.
Meanwhile, the Council approved the creation of the Presidential Council on Industrial Revitalisation Roadmap, with President Bola Tinubu as its chairperson.
The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, said the 10 subcommittees in the Council would consider all the policies within various ministries, as well as the Ministry of Industry, Trade, and Investment.
The council members will be split into 10 subcommittees on consumer credit, commodity exchange, heavy industries and steel development, trade facilitation, and ease of business.
Others are subcommittees on licensing and certification of artisans, trade facilitation and realization, mining and solid minerals, oil and gas, and creative industries.
Uzoka-Anite said the subcommittees on defense, industries, and pharmaceuticals were stepped down.
The FEC also approved the creation of a committee to review the Free Trade Zone setup.
This committee will ‘look at the setup, look at incentives, look at the laws and the reforms and come up with reforms that will help to stimulate and catalyze the economic benefits of the free trade zones and special economic zones,” the Minister explained.