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Nigeria creates Humanitarian and Poverty Alleviation Trust Fund, okays $3.45bn World Bank loan for Power, 4 other projects

President Bola Ahmed Tinubu (far left) at a FEC Meeting in Abuja, FCT

*Betta Edu, Minister for Humanitarian Affairs and Poverty Alleviation, also sdiscloses the Federal Executive Council has approved the creation of a Humanitarian and Poverty Alleviation Trust Fund to help the Federal Government respond promptly to humanitarian situations with hopes to raise at least $5billion annually into the pool

Isola Moses | ConsumerConnect

The Federal Executive Council (FEC), in Nigeria, at its weekly meeting Monday, October 23, 2023, at the Presidential Villa, Abuja, FCT, approved $3.45billion fresh World Bank loan application for the financing of five items, including electricity sector, renewable energy initiative, states’ IGR drive, adolescent girls’ initiative for learning and empowerment, and another project.

ConsumerConnect reports Mr. Olawale, Edun, Honourable Minister for Finance and Coordinating Minister of the Economy, who spoke to the State House Correspondents after the FEC meeting in Abuja, affirmed the Council approved the loan request during its meeting in the State House.

The Minister noted that the Federal Government would begin to receive the $3.5billion “zero-interest” loan, which Edun stated is payable within 40 years with a 10-year moratorium which means payments would start from 2033.

He also said: “Today (Monday) at the Federal Executive Council, I presented five memos which were gracefully approved by the Council.

“They had to do with concessional and, in many cases, zero-interest financing by the World Bank and the International Development Association, which is the very concessional financing arm.”

The Minister further explained: “The projects that were approved for funding were in the power sector and then the renewable energy sector.

“There was funding for states for resource mobilisation programmes to help them with the internally-generated revenue efforts.”

Edun stated: “There was a project for adolescent girls’ initiative for learning and empowerment. And then finally the fifth financing that was approved was for Women project.

“So, those were five loans totalling $3.45bn. And as you know, the tenure is all around 40 years, with a moratorium period of around 10 years and interest very low, or in the cases of either loans, zero interest. However, some fees would be incurred.”

Government creates Humanitarian and Poverty Alleviation Trust Fund

Speaking at the media briefing Monday, in the State House, Betta Edu, Honourable Minister for Humanitarian Affairs and Poverty Alleviation, also said the FEC had approved the creation of a Humanitarian and Poverty Alleviation Trust Fund.

Edu explained the Fund would help the Federal Government to respond promptly to humanitarian situations in Nigeria.

The Nigerian Government hopes to raise at least $5billion annually into the Fund, she noted.

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