FEC Okays $250m Soft Loan For Rural Projects

Soft loans of $150 million from the African Development Bank (AfDB) and another $100 million from the African Development Finance (ADF) have been approved by the Federal Executive Council (FEC) for the provision of rural infrastructure in the country.

The approval followed a memo presented on Wednesday at the FEC meeting in Abuja by the Minister of Finance, Mrs. Kemi Adeosun.

The loans, according to her, are to facilitate the provision of Rural Water Supply and Sanitation Initiative (RWSSI) as well as a grant of €5 million to finance Inclusive Basic Service Delivery and Livelihood Empowerment Integrated Programme in five states of the North East.

She explained that the projects would improve the quality of life of about 14 million people and over 2.3 million internally displaced persons affected by the Boko Haram insurgency through an increase to access to basic social services.

These, she said, include potable water supply, sanitation, health care delivery, education, entrepreneurship development, job creation and livelihoods for youth, women and the vulnerable, social cohesion and physiological support.

According to the Mrs. Adeosun, the five benefiting states are Adamawa, Borno, Gombe, Bauchi and Taraba States.

She said the five states will make a counterpart funding of 6.1 percent, noting that the loan would be repayable in 25 years with on a highly concessional interest rate.