FEC Approves N3.4trn, $2.96bn, €200m For Roads, Ports, Power, Agriculture, MSMEs

The Federal Executive Council (FEC) on Monday announced a package of approvals and financing that the government said will expand roads, ports, power, agriculture, and support small businesses across the country.

The minister of finance and coordinating minister of the economy, Taiwo Oyedele, told State House correspondents that the Council considered 14 memoranda from his ministry and grouped the approvals into five strategic areas.

He said the approvals include international and local financing totalling about $2.96 billion, €200 million, and N215 billion for transportation, agriculture, power, infrastructure, and micro, small, and medium enterprises (MSMEs).

Oyedele said the Council approved N215 billion to complete investments in the Presidential Compressed Natural Gas (CNG) initiative, adding that the funds will be used for CNG buses, electric vehicles, CNG‑powered tricycles and vehicle conversion centres. “The first one is to do with transportation, how to bring the cost of transportation down,” he said, and added that the approvals will allow the remaining investments under the programme to proceed.

On agricultural financing, Oyedele said FEC approved arrangements worth $900 million to support rural technical and vocational training, Special Agro‑Industrial Processing Zones (SAPZ) and agricultural value chain projects. “Altogether, we have different financing arrangements coming to a total of 900 million U.S. dollars,” he said.

He also said the Council approved a $160 million facility for rural solar energy projects in Niger State, with the Islamic Development Bank providing $150 million and the Niger State Government providing $10 million as counterpart funding. “This is a 160 million U.S. dollars facility for Niger State solar development projects,” Oyedele said.

To expand access to finance for small businesses, he said FEC approved €200 million and $500 million in financing through the Development Bank of Nigeria (DBN). “We always have to think about how to support that sector because supporting them is supporting ourselves and our country,” Oyedele said, saying the financing will provide affordable credit to small businesses.

The minister of Works, David Umahi, said the Council also approved road projects worth about N2.078 trillion across 10 states as part of efforts to modernise the nation’s transport network. He told reporters that 23 major road projects were approved in Adamawa, Taraba, Ebonyi, Kwara, Cross River, Kogi, Lagos, Niger, Oyo and Plateau states. “FEC approved a total of 23 projects in 10 states of the federation,” he said.

Umahi said the approvals include construction and rehabilitation of strategic road corridors to improve connectivity, ease the movement of goods and people, and stimulate economic growth. He added that the FEC ratified a presidential approval to augment a road project in Gashua, Yobe State, by N15 billion because of rising construction costs. “The project was awarded in 2022. N15 billion is being used to review it because of the price increase in construction materials,” he said.

He said FEC approved N15.246 billion for Phase II of the Yola–Fufore–Gurin Road after completion of Phase I, and approved the Full Business Case for the operation and maintenance of the Lagos–Ibadan Expressway under a modified Swiss Challenge procurement process. President Bola Tinubu directed that reconstruction of deteriorating sections of the Lagos–Ibadan Expressway use concrete pavement technology, Umahi said. “Mr. President directed that we should use due process to procure the Lagos‑Ibadan Expressway to the new concrete technology,” he added.

Umahi further said Council approved the reconstruction of about 400.9 kilometres of federal roads under a tax credit scheme to be executed by the Dangote Group at a cost of N1.8325 trillion. “We agreed… to allow Dangote, who also has major investments along that corridor, to do it,” he said. He also reported that the first section of the Abuja–Kaduna–Kano Highway, covering 118 kilometres and valued at N137 billion, has been completed and that the remaining 164 kilometres is expected to be finished in November.

On his part, the minister of Aviation and Aerospace Development, Festus Keyamo, told correspondents that the federal government approved N34.398 billion for the construction of an airstrip in Gboko, Benue State, with the contract awarded to CCECC Nigeria Limited. “It was awarded in favour of Messrs CCECC Limited in the sum of N34.398 billion,” he said, adding that the airstrip will serve agricultural activities, boost security operations and support humanitarian and emergency medical services.

On maritime and environmental approvals, the minister of Environment, Balarabe Abbas Lawal, speaking on behalf of the Minister of Marine and Blue Economy, said FEC approved projects worth about N286 billion to strengthen maritime safety, improve port operations and protect Nigeria’s waterways. He said the Council approved four major items: procurement of two marine pollution control vessels valued at about N59.05 billion to tackle plastic and other marine waste; acquisition of six pilot cutter boats worth about N80.03 billion to assist pilots and port navigation; purchase of two firefighting boats at about N34.06 billion to boost emergency response at ports and terminals; and N112.85 billion for capital and maintenance dredging of the Escravos Channel in a joint venture with private partners and the Nigerian Ports Authority.

Lawal said the dredging project will improve navigability, remove obstructions, strengthen pollution monitoring and maintain navigational aids to meet international maritime standards. He said the maritime projects are expected to improve safety, enhance port efficiency and support growth in the blue economy.

Separately, Oyedele told reporters that FEC approved a $1.2 billion financing facility for Section Two of the Sokoto–Badagry Super Highway, which crosses 11 states, to improve connectivity, ease logistics and support economic development. “We made very strategic decisions, which I have decided to categorise under five headings,” he said, summarising the Council’s multi‑sector approvals.

Taken together, the ministers said the approvals on Monday signalled a major push by the federal government to improve transport corridors by road and sea, increase energy access in rural areas, boost agriculture, and widen access to affordable finance for small businesses.