In a significant development, the Federal Executive Council (FEC) has announced that Nigeria, under the leadership of President Bola Tinubu, has secured a $1.5 billion zero-interest loan from the World Bank. The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this information to State House Correspondents after the second FEC meeting in Abuja.
Edun explained that the FEC approved the application for financing from the World Bank’s International Development Association (IDA), which offers virtually free or zero-interest lending. He emphasized that Nigeria’s macroeconomic decisions to restore balance in the economy and improve government finances had garnered support from multilateral development banks.
The $1.5 billion concessional financing from the World Bank is expected to be used for initiatives that align with the country’s economic recovery and development goals. This funding is considered relatively cheap and will be disbursed quickly to support Nigeria’s economic objectives.
Additionally, the FEC approved $80 million in financing from the African Development Bank for the Ekiti Knowledge Zone (EKZ) project. The EKZ project aims to empower youth in the knowledge economy through technology and communications, fostering innovation and skill development.
In another development, the FEC approved the agreement between the government and labour, which was reached during the October 2 meeting. The agreement, designed to provide industrial harmony, received presidential approval, and the 30-day implementation timeline was also endorsed by the FEC. This move highlights efforts to address labor-related issues and maintain a conducive environment for economic growth and stability.
