The Federal Executive Council on Monday approved the application for a $3.45bn loan to finance the power sector and others.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun disclosed to State House Correspondents that the government would proceed to receive the $3.5bn “zero-interest” loan payable within 40 years with a 10-year moratorium, meaning payments would begin from 2033.

Edun explained, “Today at the Federal Executive Council, I presented five memos which the Council gracefully approved. 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.

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

The projects include items in the power sector, renewable energy, states’ resource mobilisation programme, adolescent girls’ initiative for learning and empowerment and a women’s empowerment project.

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