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Okays $1.5bn IMF, $80m AfFB loans
By Egena Sunday Ode
The Federal Government is projecting the sum of N26 trillion as estimates for the 2024 budget which proposal it hopes to submit to the National Assembly before December 31, 2023.
Minister of Budget and National Planning, Atiku Bagudu, disclosed this while briefing newsmen at the end of the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu, at the presidential villa, Abuja on Monday.
He said the council has approved the 2024-2026 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP).
Bagudu was joined at the briefing by his colleagues from Ministry of Information, Mohammed Idris; Minister of Finance and Coordinating Minister of Economy, Wale Edun; Works and Housing Dave Umahi; Industry, Trade and Investment, Doris Uzoka-Anite; and Labour and Employment, Simon Lalong.
According to him, the executive is required by the Fiscal Responsibility Act to present to the National Assembly ahead of a budget presentation, a document which will provide the medium term economic outlook for the economy.
He said FEC”s assumptions were based on $73.96 per barrel of crude oil and an exchange rate of N700 to $1.
He said: “Now, it was presented on the background of the commendable measures that have been taken since June in order to restore macroeconomic stability by particularly the deregulation of petroleum prices, which we maintained that subsidies are gone and indeed the regulation of the foreign exchange market.
“So, council deliberated, as well as the implication of this and all measures promised in the renewed hope agenda consumer credits, mortgages, mortgage, reversed or dismissed institution as well as funding the newly aligned institutional changes particularly ministries with specific functions that are able to generate growth so that would be better for our country.
“The council members acknowledge the medium term expenditure framework, and it is agreed that we can go ahead to the next step of consultation and presentation to the national assembly.”
Also, the Federal Executive Council approved $1.5 billion zero interest loan from the World Bank to shore up the economy.
Minister of Finance and coordinating Minister of the economy, Wale Edu, who disclosed the approval to newsmen at the post-FEC briefing said the loan was being processed on behalf Nigeria by the World Bank on appreciation of the micro and macro economic policies of the present administration.
Edu also disclosed that FEC approved another $80 million loan from Africa Development Bank (AfDB) to finance what he called Ekiti Knowledge Zone (EKZ).
The project, according to him is aimed at getting young people to embrace technology and use it foe employment purposes.
He said: “We also approved today the application for financing from the World Bank. And in particular, the International Development Association which is really the virtually free or zero interest lending arm or financing arm of the World Bank.
“The total is $1.5 billion. And the background is just as you heard from the Minister of planning and budget. The world today is one of high interest rates, as the developed world looks to fight inflation. They do it by restricting money, keeping interest rates high so that you can get inflation down. What that means is that interest rates for everybody else, become not just high but very painful, if not on affordable within that context.
“Nigeria has been able to make the kind of macro economic moves, has been able to take the tough decisions to restore balance in the economy in the government’s finances that has warranted support, that has engender and has elicited even support from the multilateral development bank’s and is on the basis of that, that the world bank is willing to consider and to process on our behalf $1.5 billion of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly.
“And that was what was presented to the Federal Executive Council and the members approved that we go ahead with that financing even that it is affordable.
“Secondly, an $80 million financing from the African Development Bank was also approved by the Federal Executive Council. This financing is for a project in Ekiti called the Ekiti knowledge zone Project EKZ. An EKZ that is basically to support young people and their quest to take on technology to use it to be employed to be trained and to benefit from being part of the knowledge economy, being part of the technological wave that is present very much in Nigeria, which is becoming a bigger and bigger share of the economy.
“So it’s $80 million to help the young people in the sector of Knowledge Economy technology and communications generally.”
