FEC approves $2.9bn, N215bn financing for transport, agriculture, power projects

The federal executive council (FEC) has approved financing arrangements worth about $2.96 billion, €200 million and N215 billion to support projects in transportation, agriculture, power, infrastructure and micro, small and medium enterprises (MSMEs).

Taiwo Oyedele, minister of finance and coordinating minister of the economy, spoke to journalists after the FEC meeting chaired by President Bola Tinubu on Monday.

The minister said the approvals were part of 14 memoranda presented by the ministry.

Oyedele said the council approved N215 billion to complete investments under the presidential compressed natural gas (CNG) initiative, including the procurement of CNG buses, electric vehicles, CNG-powered tricycles and vehicle conversion centres.

“The first one is to do with transportation, how to bring the cost of transportation down,” the minister said.

On agriculture, Oyedele said the council approved financing arrangements totalling $900 million for rural technical and vocational training, special agro-industrial processing zones (SAPZs) and agricultural value-chain projects.

Altogether, we have different financing arrangements coming to a total of $900 million,” he said.

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The minister said the FEC also approved a $160 million facility for rural solar energy projects in Niger state, comprising $150 million from the Islamic Development Bank and $10 million in counterpart funding from the state government.

He said the council cleared a $1.2 billion financing facility for section two of the Sokoto-Badagry super highway, describing the project as critical to improving connectivity, easing logistics and driving economic development across the 11 states along the corridor.

Further speaking, Oyedele said the council also approved €200 million and $500 million in financing through the Development Bank of Nigeria (DBN) to improve access to affordable credit for MSMEs.

“We always have to think about how to support that sector because supporting them is supporting ourselves and our country,” he said.

The minister said the approvals are part of the government’s efforts to stimulate economic growth through strategic investments in critical sectors, improve infrastructure, and expand financing for businesses.