Nigeria Secures $3.45 Billion ‘Zero-Interest’ Loan for Vital Projects and Launches Humanitarian Fund

The Federal Executive Council of Nigeria has approved a $3.45 billion loan application to finance five crucial projects.

The projects span diverse sectors, encompassing power, renewable energy, state resource mobilization, adolescent girls’ learning and empowerment, and a women’s empowerment initiative.

The “zero-interest” loan, payable over 40 years with a 10-year grace period, is a notable move towards bolstering national development.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, emphasized the concessional and zero-interest financing from international entities like the World Bank and the International Development Association.

These projects are poised to accelerate progress in Nigeria’s power and renewable energy sectors, support state resource mobilization efforts, and empower adolescent girls with valuable skills.

The Minister of Education, Tahir Mamman, highlighted the expansion of the adolescent girls’ initiative to 11 additional states, reinforcing the commitment to empower girls and reduce the number of out-of-school children.

The Federal Executive Council has given the green light to establish the Humanitarian and Poverty Alleviation Fund, aiming to raise $5 billion annually.

This flexible financing approach seeks contributions from the government, private sector, development partners, individuals, and philanthropists.

The fund will enhance Nigeria’s ability to respond to humanitarian crises swiftly, addressing the pressing issues of poverty alleviation and emergency relief.

In another significant development, the Federal Government approved a draft policy for the solid mineral sector, focusing on regulations, guidelines, and sourcing dynamics.

Minister of Solid Minerals Development, Mr. Dele Alake, underscored the importance of investing in technology to curb illegal mining, a source of banditry and insecurity in rural areas.

The government’s commitment to technological solutions is pivotal in securing Nigeria’s mining sector and fostering sustainable development.