FEC Approves $1.5bn World Bank, $80m IDB Loan

The federal government has approved an application for $1.5 billion in financing from the World Bank.

This even as the government approved an $80 million financing from the African Development Bank.

Minister of finance and coordinating minister of economy, Wale Edun, disclosed this to State House correspondents yesterday after the federal executive council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.

According to him, this funding will be provided through the International Development Association, known for its virtually interest-free loans.

He explained that in a world grappling with high interest rates to combat inflation, Nigeria’s efforts to restore economic balance and prudent financial management have garnered support from multilateral development banks.

As a result, Edun noted that the World Bank is willing to provide $1.5 billion in concessional financing, which is not only affordable but also disbursed relatively quickly.

He said, “The total is $1.5 billion, and the background is just as you heard from the minister of planning and budget. The world today is one of high interest rates, as the developed world looks to fight inflation.

“They do it by restricting money, keeping interest rates high so that you can get inflation down. What that means is that interest rates for everybody else become not just high but very painful, if not affordable within that context.

“Nigeria has been able to make the kind of macroeconomic moves, has been able to take the tough decisions to restore balance in the economy in the government’s finances that has warranted support, that has agenda and has elicited even support from the multilateral development bank.

“And is on the basis of that, that the World Bank is willing to consider and to process on our behalf $1.5 billion of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly.”

On the $80 million funding from the African Development Bank, the minister said it was designated for the Ekiti Knowledge Zone Project (EKZ) in Ekiti State.

He said EKZ aims to empower young individuals by facilitating their engagement in the knowledge economy and the technology sector.

Edun said the project will enable training, employment opportunities, and participation in the ever-growing technological landscape in Nigeria.

“An EKZ that is basically to support young people and their quest to take on technology to use it to be employed, to be trained and to 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.

“So, it’s $80 million to help the young people in the sector of knowledge economy technology and communications generally,” he added.