The Federal Executive Council (FEC) on Wednesday approved a $247.3 million foreign loan facility from the African Development Bank (AfDB) and the French Government to facilitate the financing of various electricity projects across the country.
What we know: The Council’s decision comes shortly after a warning about Nigeria’s rising debt profile by the International Monetary Fund (IMF).
According to the Minister of Finance, Zainab Ahmed, $150 million of the loan is from the AfDB while $50 million was from the African Grow Together Fund.
Parts of the loan will be allocated towards Lagos State for upgrading the state’s transportation facilities in urban areas.
According to Ahmed: “The project is a nationwide initiative to be implemented by the rural electrification agency. The project aligns with the strategy of the Federal Government on electrifying rural communities.”
The government aims to fund solar hybrid mini-grids for rural economic development as well as procure equipment for off-grid communities among other efforts.
It is estimated that about 500,000 people will be able to have access to electricity, amounting to about 105,000 households.
Eight universities will also benefit from this scheme and about 20,000 small, micro, medium enterprises across different communities in the nation.