FEC bets on external financing with $2.76bn package for economic growth

By Reporter

The Federal Executive Council (FEC) has approved financing packages worth $2.76 billion, €200 million and N215 billion to fund transportation, agriculture, renewable energy, infrastructure and micro, small and medium-sized enterprises (MSMEs), as the Federal Government intensifies investments aimed at stimulating economic growth.

The approvals were announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, following Monday’s FEC meeting chaired by President Bola Tinubu.

According to the minister, the Council considered 14 memoranda presented by the Ministry of Finance, with the financing approvals aligned with the administration’s Renewed Hope Agenda and targeted at improving productivity across critical sectors of the economy.

Edun said the approved financing arrangements were grouped into five strategic priorities designed to lower transportation costs, improve food production, expand clean energy access, strengthen infrastructure and improve financing for small businesses.

“The Council made very strategic decisions, which I have categorised under five headings. The first approval focuses on transportation and how to reduce its cost,” he said.

He added that the various transportation financing arrangements amount to $900 million, while stressing that supporting MSMEs remains central to the government’s economic strategy.

“We must continue to support small businesses because supporting them is supporting ourselves,” he said.

Among the approvals, FEC allocated N215 billion to complete investments under the Presidential Compressed Natural Gas (CNG) Initiative, covering the procurement of CNG buses, electric vehicles, tricycles and the establishment of CNG conversion centres.

The Council also approved $900 million for agricultural development projects, including rural technical training, Special Agro-Industrial Processing Zones and agricultural value-chain development.

To improve energy access in underserved communities, FEC approved $160 million for rural solar electrification, comprising $150 million from the Islamic Development Bank and $10 million in counterpart funding.

For infrastructure, the Council approved $1.2 billion for Section Two of the Sokoto–Badagry Super Highway, a flagship road project expected to improve connectivity across 11 states, facilitate trade and strengthen logistics nationwide.

In addition, FEC approved €200 million and $500 million through the Development Bank of Nigeria to expand affordable financing for MSMEs.

Edun said the financing package is expected to improve infrastructure, strengthen agricultural productivity, increase access to renewable energy and unlock affordable credit for small businesses, thereby supporting broader economic growth.

The latest approvals underscore the Federal Government’s continued reliance on multilateral and development financing to accelerate infrastructure delivery and stimulate investment in priority sectors.

The approvals come weeks after FEC cleared $2.99 billion for the Lagos Green Line rail project and rail developments in Kano and Kaduna as part of the Federal Government’s capital expenditure programme for 2025 and 2026.

In September 2025, the Minister of Information and National Orientation, Mohammed Idris, disclosed that about N250 billion had been secured for rail development in Kaduna and Kano, with N150 billion earmarked for Kano and N100 billion for Kaduna.

Editorial note: The attribution in your original draft appears inaccurate. The Minister of Finance and Coordinating Minister of the Economy is Wale Edun, not Taiwo Oyedele. Taiwo Oyedele serves as Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. It’s worth verifying the source document before publication.