President Tinubu gets FEC approval to borrow $1bn from AfDB

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The Federal Executive Council, FEC, on Monday, approved $1bn budget support loan from the African Development Bank to be received by the federal government.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated this while briefing state house correspondents shortly the FEC meeting yesterday.

According to him, the AfDB loan will have an interest rate of 4.2 per cent for 25 years with an eight-year moratorium.

He said, “The Federal Executive Council approved a $1bn concessionary loan for general budget support and to be used to improve forex availability in the country.

“The $1bn loan from AfDB is a budget support fund for ongoing economic reforms. It is to support government programmes in the power sector, social inclusion, and the fiscal policy reforms as a whole sector policy initiative.”

Recall that Edun had in October disclosed that the Federal Government secured a $80m loan from the AfDB to finance various projects in critical sectors of the economy. He noted at the time that the $80m was to help young people in the knowledge economy, technology, and communications.

Continuing, the finance minister who spoke on the tax initiatives of the Federal Government said, “There was a briefing by the Fiscal Policy and Tax Reform Committee, essentially they’ve been working for roughly 90 days, they’ve been working very well and very effectively, such that they are in a position to have even impacted the economy by coming up with initial reforms, as well as signposting the way forward in terms of very important targets.

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