FG secures N1.5bn interest-free World Bank loan to improve govt finances

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, says the Federal Government has approved the financing of about $1.5 million interest-free loan from the World Bank to finance projects.

Edun made the announcement on Monday after the conclusion of the Federal Executive Council meeting at the presidential villa in Abuja.

The minister also disclosed that the loan was secured from the International Development Association which is really the virtually free or zero interest lending arm or financing arm of the World Bank.

He also said the $80 million is to help the young people in the areas of economy, technology and communications generally.

He said, “We also approved today the application for financing from the World Bank. And in particular, the International Development Association which is really the virtually free or zero interest lending arm or financing arm of the World Bank.

“The total is $1.5 billion. And the background is just as you heard from the Minister of planning and budget. The world today is one of high interest rates, as the developed world looks to fight inflation.

“They do it by restricting money, keeping interest rates high so that you can get inflation down. What that means is that interest rates for everybody else, become not just high but very painful, if not affordable within that context.”

Speaking further, Edun disclosed that $80 million financing from the African Development Bank was also approved by the Federal Executive Council.

He disclosed that the financing is meant for a project in Ekiti  called the Ekiti Knowledge Zone Project EKZ.

“Nigeria has been able to make the kind of macro economic moves, has been able to take the tough decisions to restore balance in the economy in the government’s finances that has warranted support, that has gender and has elicited even support from the multilateral development bank’s and is on the basis of that, that the world bank is willing to consider and to process on our behalf $1.5 billion of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly.

“And that was what was presented to the Federal Executive Council and the members  approved that we go ahead with that financing even that it is affordable.

“Secondly, an $80 million financing from the African Development Bank was also approved by the Federal Executive Council. This financing is for a project in Ekiti  called the Ekiti knowledge zone Project EKZ. An EKZ that is basically to support young people and their quest to take on technology to use it to be employed to be trained and to benefit from being part of the knowledge economy, being part of the technological wave that is present very much in Nigeria, which is becoming a bigger and bigger share of the economy.

“So it’s $80 million to help the young people in the sector of Knowledge Economy technology and communications generally,” he added.