FG seeks fresh $3.45 billion World Bank loan for five projects

World Bank loan

World Bank loan; President Bola Tinubu’s government has given its approval for a $3.45 billion loan to fund five specific initiatives.

The Federal Executive Council (FEC) reached this decision during a meeting held on October 23, 2023.

The loan finances projects in power, renewable energy, resource mobilization, girls’ education, skills development, and women’s empowerment, World Bank loan.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, informed the media that the Tinubu administration will proceed to secure this $3.5 billion loan, which comes with a “zero-interest” feature and a repayment period of 40 years, including a 10-year grace period before payments commence, starting from 2033.

Edun stated, “I presented five proposals graciously approved by the Council during today’s Federal Executive Council meeting.”

Proposals involve concessional, often zero-interest financing from institutions like the World Bank and International Development Association, offering favorable terms.

He further explained the nature of the approved projects. They encompass investments in the power and renewable energy sectors, financial support for state resource mobilization programs to enhance their revenue generation efforts, a program to empower adolescent girls through education and skill development, and a women’s empowerment project.

Edun clarifies $700 million initiative aims to equip secondary school girls with academic and job-relevant practical skills.

Edun mentions $3.45 billion project funding, with 40-year loan terms, including a 10-year grace period and low interest.

However, there may be some associated fees.” Education Minister Dr. Tahir Mamman expands girls’ empowerment program from 7 to 11 additional states, emphasizing nationwide coverage.

Expansion targets girls aged 10 to 20 in participating states, aims to increase schools to empower them effectively.

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Mamman stresses alignment of programs with Tinubu administration’s goal to reduce, ideally eliminate, out-of-school girls and children nationwide.

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