FG Secures $1.25bn World Bank Financing To Boost Job Creation

The Federal Executive Council (FEC) has approved a $1.25 billion financing facility from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) to support Nigeria’s actions for investment and job acceleration development policy financing.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while briefing State House correspondents on the decisions taken at Wednesday’s meeting of the Federal Executive Council (FEC).

Oyedele described the facility as concessional, with repayments of about 30 years, saying the financing would be dedicated to helping accelerate job creation.

“This is a concessional facility with repayments of like 30 years, which we’re going to dedicate into helping to accelerate job creation,” he said.

The minister said job creation remained a key priority for the country.

“And you would agree that if we have any priority as a country, this clearly has to be one of it,” he said.

The Council also approved the signing of double taxation avoidance treaties between Nigeria and Ghana, Nigeria and Tanzania, and Nigeria and the Swiss Confederation, commonly known as Switzerland.

Oyedele said the overall objective of the treaties was to expand the opportunities available to Nigerian businesses to invest in other countries and to attract investment from those countries into Nigeria.

He said the agreements were particularly important for countries where Nigeria has significant economic interests, citing Ghana as an example.

“The overall objective of these treaties is to ensure that Nigeria can expand the opportunities available to our businesses to invest in other countries, and also for us to attract investment from those other countries, particularly where we have a lot of interest between our countries, for example, Ghana,” he said.

Oyedele said the federal government was seeking to develop a robust tax avoidance treaty network that would allow Nigeria to compete with leading countries in Africa.

He cited South Africa as an example, saying the country has about 60 such treaties.

“But we’re making good progress,” he said.

The approvals for the financing facility and the three tax treaties were among the decisions announced by Oyedele following the Council meeting.

The financing is intended to support investment and job acceleration development policy financing, while the tax treaties are aimed at expanding opportunities for Nigerian businesses to invest abroad and helping Nigeria attract investment from Ghana, Tanzania and Switzerland.