FEC Approves $2.9 Billion Financing Package to Boost Transport, Agriculture, Power and MSMEs

The Federal Executive Council (FEC) has approved a massive financing package worth approximately $2.96 billion, €200 million and N215 billion to fund key projects across transportation, agriculture, power, infrastructure and small business development. The approvals, announced after Monday’s FEC meeting chaired by President Bola Tinubu, signal the administration’s continued push to stimulate economic growth through strategic investments in critical sectors.

Speaking to journalists after the meeting, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, revealed that the approvals formed part of 14 memoranda presented by the Ministry of Finance. According to him, a significant portion of the funding will be directed toward improving transportation and reducing travel costs for Nigerians through investments under the Presidential Compressed Natural Gas (CNG) Initiative. The N215 billion allocation will support the procurement of CNG buses, electric vehicles, CNG-powered tricycles, and the establishment of vehicle conversion centres nationwide.

Agriculture also received a major boost, with the council approving financing arrangements totaling $900 million. The funds will support rural technical and vocational training, Special Agro-Industrial Processing Zones (SAPZs), and agricultural value-chain projects designed to enhance food production, create jobs and strengthen rural economies. The move is expected to improve productivity across Nigeria’s agricultural sector while opening new opportunities for farmers and agribusiness operators.

In the energy and infrastructure sectors, the council approved a $160 million facility for rural solar energy projects in Niger State, including $150 million from the Islamic Development Bank and $10 million in counterpart funding from the state government. FEC also cleared a $1.2 billion financing facility for the second section of the Sokoto-Badagry Super Highway, a flagship infrastructure project expected to improve connectivity, ease the movement of goods and services, and drive economic activities across the 11 states along the corridor.

The council further approved €200 million and $500 million in financing through the Development Bank of Nigeria (DBN) to expand access to affordable credit for micro, small and medium enterprises (MSMEs). Oyedele emphasized the importance of supporting small businesses, describing them as the backbone of the nation’s economy. The latest approvals underscore the government’s broader strategy to strengthen infrastructure, empower businesses, create jobs and drive sustainable economic development across the country.

source: The cable