Nigeria Secures $3.45 Billion World Bank Loan to Boost Power, More

The Federal Executive Council (FEC) has approved a $3.45 billion World Bank loan application to fund five specific initiatives.

After the Abuja FEC meeting on Monday, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed the loan’s approval during the State House gathering.

This loan, amounting to $3.5 billion and described as “zero-interest,” will be disbursed to the Federal Government. The financial arrangement spans 40 years with a 10-year moratorium, signifying that repayments will commence in 2033.

Minister Edun provided further details, stating, “Today at the Federal Executive Council, I presented five memos that were gracefully approved by the Council. They pertained to concessional and, in many cases, zero-interest financing by the World Bank and the International Development Association, which is the highly concessional financing arm.”

The approved projects cover the power sector, renewable energy initiatives, support for states in their efforts to boost internal revenue, an initiative focused on the education and empowerment of adolescent girls, and a Women’s project.

These five loans collectively amount to $3.45 billion, with an estimated 40-year repayment period, accompanied by a 10-year moratorium and minimal interest, or in certain cases, no interest at all. However, there will be some associated fees.

During the briefing, Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, disclosed that FEC had also sanctioned the establishment of a Humanitarian and Poverty Alleviation Trust Fund.

The creation of this fund aims to enable the Federal Government to respond promptly to humanitarian crises in Nigeria, and to raise at least $5 billion annually to support these efforts.