As FEC approves $396 million in loans for IDPs
THE economy is undergoing significant change driven by reforms in the fiscal and monetary sectors.
This was revealed by the Minister of Finance and Coordinating Minister of Economy, Wale Edun, speaking to journalists at the end of the Federal Executive Council meeting chaired by President Bola Ahmed Tinubu.
Edun cited exchange rate stability, correcting market distortions and improving investor confidence as factors responsible for economic recovery.
He said: “In the second quarter, the economy had really turned around in terms of growth. Growth was accelerating – up 4.2 per cent – while inflation had dropped to 18 per cent.”
The Minister stated that critical indicators of consumer spending show that unlike before, Nigerians are spending less of their income on essential products such as food, health and transportation.
“People now spend about 50 percent of their income on basic needs, compared to 90 percent before. There is more affordability and the cost of living is slowly coming down.”
Edun identified Nigeria’s recent exclusion from the Financial Action Task Force (FATF) gray list as a “major institutional achievement,” noting that it has restored the country’s standing in the global financial community and reduced the cost of cross-border transactions.
He said this milestone, combined with the recent oversubscription of Nigeria’s $2.35 billion Eurobond offering, which attracted $13 billion in bids, reflects global confidence in the Tinubu administration’s economic reforms.
“Despite recent political headwinds, investors focused on the fundamentals of the Nigerian economy. We were prudent in our borrowing, not exceeding what was approved or budgeted. The oversubscription shows a resounding vote of confidence in Nigeria.”
The Minister of Finance also revealed the approval of two major external loan facilities totaling $396 million to support critical health and humanitarian projects in the northern region of Nigeria.
According to him, the first mechanism, a $300 million loan from the World Bank, is intended to support internally displaced persons (IDPs) and host communities in several states in northern Nigeria.
The second approval is for a combined $96 million loan from the Islamic Development Bank (IsDB) and the African Development Bank (AfDB); $50 million and $46 million, respectively, for the Sokoto Health Infrastructure Project, to which the Sokoto State Government will also contribute counterpart funds.
“The $300 million loan from the World Bank is for IDPs and host communities in several Northern states. The second approval is for the credit from the Islamic Development Bank and the African Development Bank for a total of $96 million to finance the Sokoto Health Infrastructure Project,” Edun explained.
Justifying the projects, the Minister of Finance noted that they are central to President Tinubu’s Renewed Hope Agenda, which aims to address regional disparities, improve access to healthcare and rebuild communities affected by conflict and displacement.
His counterpart at the Ministry of Arts, Culture, Tourism and Creative Economy, Hannatu Musawa, also announced the FEC’s approval of the establishment of a presidential task force in “Detty December”.
Musawa told journalists that the Task Force will coordinate federal ministries, departments and agencies to support Lagos State and other participating states in delivering world-class festival experiences during the “Detty December” period, the popular month-long season of music, arts and cultural celebrations.
“We have asked the President to establish a Presidential Task Force on Detty December that will enable all the different interdependencies (aviation, interior, energy and others) to provide the international community with a true destination for Detty December. It will also enable the federal government to support Lagos State and other hosts to maximize the economic and tourism potential of the season.”
He noted that the initiative would serve as a catalyst for the creative and tourism industries, attract private sector investments and position Nigeria as a global cultural hub.
Another important approval, according to the Minister of Tourism, was the establishment of the Presidential Tourism Promotion and Investment Council, which will be chaired by President Tinubu and with the Minister of Arts, Culture and Tourism as vice-president.
“This Council will build a positive global image of Nigeria, showcasing our unity and stability to the world. A secretariat will be established in our ministry to drive this agenda.”