The Federal Executive Council (FEC) has given its nod to a $1 billion budget support loan from the African Development Bank (AfDB), as announced by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Following the FEC meeting chaired by President Bola Tinubu, Edun revealed that memos on financing, including the $1 billion concessional financing, were presented and approved.
The $1 billion loan has a 25-year tenure with an eight-year moratorium at a concessional interest rate of about 4.2 percent per annum.
The AfDB extended this support in recognition of Nigeria’s macroeconomic measures, including efforts to stabilize the economy, restore revenue, and improve foreign exchange situations.
Edun explained the approval of a total limit of N2 trillion for the Ministry of Finance, allowing flexibility in utilizing the market to refinance expensive debt with cheaper funding. This move is expected to save over N50 billion in debt servicing over time.
The FEC approved an inherited loan of $100 million from the AfDB and $15 million from the Canada-African Development Bank Climate Fund for Abia State.
The funds are earmarked for waste management and road rehabilitation in Umuahia and Aba.
Edun also highlighted the positive impact of the presidential committee on tax reforms and fiscal policy, noting that the committee has made significant strides in implementing initial reforms and outlining crucial targets for the nation’s economic development.