The federal government announced on Monday that it had secured budget support loans worth $1.5 billion from the World Bank and loans worth $80 million from the African Development Bank to fund various projects in key sectors of the economy. did.
The report said Nigeria qualified for a “relatively cheap” loan given “macroeconomic developments” in the past few months since President Bola Tinubu took office.
Finance Minister and Coordinating Minister for the Economy Wale Edun told state house correspondents that if the end of the agreement is implemented, the FG will receive a total of $1.5 billion by the end of the year.
He explained: “The Board today approved an application for a loan from the World Bank and, in particular, the International Development Association, the virtually free or interest-free lending arm or lending arm of the World Bank.
“The total amount is $1.5 billion. The world today is in a high interest rate situation as developed countries try to fight inflation. They do it by restricting money and keeping interest rates high to reduce inflation. Masu.
“That means not only are interest rates higher for everyone else, but they are also very painful, even if they are unaffordable in their circumstances.”
Edun vowed that Nigeria would take macroeconomic moves and tough decisions to restore balance to the economy, justifying support from multilateral development banks.
“The bold, brave, bold and decisive steps taken by the President are paying off with the immediate processing of $1.5 billion in loans to Nigeria, which will be completed by the end of the year if we have everything on our side. It’s planned.
“This is based on the World Bank’s readiness to consider and process on our behalf $1.5 billion in concessional loans, relatively cheap loans, and loans that will be dispersed relatively quickly. .
And it comes in one go. It doesn’t trickle down like a project, it just supports reform efforts. And that’s what was submitted to the federal executive committee and members approved moving forward with that funding considering affordability,” Edun said.
The former Lagos Finance Secretary said there was a lag between the causes and effects of the recent reforms.
Although some effects have been seen, such as a relative reduction in smuggling and increased domestic production in some regions, “it will take time for the benefits to fully materialize,” he said.
The Minister of Finance also revealed that the Board had approved an $80 million loan from the African Development Bank.
He explained: “This funding is for a project in Ekiti called the Ekiti Knowledge Zone Project. EKZ is basically a technology-enabled company that uses technology to get hired, trained and to benefit from being part of the knowledge economy. The aim is to support young people who want to be part of the wave of technology that is very much present in Nigeria and will take an ever-increasing share of the economy.
“The bold, brave, bold and decisive steps taken by the President will be rewarded with the processing of an immediate loan of $1.5 billion to Nigeria, provided we do everything by the end of the year.
“So that’s $80 million to support young people in the knowledge economy, technology and communications in general.”
Meanwhile, the Council approved the creation of the Presidential Council on Industrial Revitalization Roadmap, chaired by President Bola Tinubu.
Minister of Industry, Trade and Investment, Dr. Doris Uzoka Anite, said the board’s 10 subcommittees will review all policies within the various ministries, not just the Ministry of Industry, Trade and Investment.
She explained: “We have a lot of policies, frameworks and guidelines within various ministries that should help boost the industry.
“And we are supposed to work together to create a single roadmap for each of these subcommittees or their respective roadmaps. The aim is to develop a complete industrial revival of the country.
“Once this situation is over, we expect to see an increase in investments in various industrial sectors. They say it will grow hopefully from 3.5% to 7%. And the GDP base is about 1 trillion, which is consistent with the president’s vision.”
Council members are divided into 10 subcommittees on consumer credit, commodity exchanges, heavy industry and steel development, trade facilitation and ease of doing business.
Other subcommittees include artisan licensing and certification, trade facilitation and enablement, mining and solid minerals, oil and gas, and creative industries.
Uzoka-Anite said the subcommittee on defence, industry and pharmaceuticals had been resigned.
The FEC also approved the establishment of a committee to consider the establishment of free trade areas.
The committee will “review the establishment, review incentives, consider legislation and reforms, and come up with reforms that will help stimulate and promote the economic benefits of free trade zones and special economic zones,” the minister explained. .
