FEC Approves $170 Million Loan To Strengthen Power in Nigeria


FEC Approves $170 Million Loan To Strengthen Power in Nigeria

The Federal Executive Council (FEC) has approved $170 million loan from the French Development Agency to strengthen power infrastructure in Abuja, the Federal Capital Territory (FCT).

The loan which is concessionary has a moratorium of 7 years period and an interest rate of 1.56 percent with repayment period of 20 years.

Finance Minister, Ngozi Okonjo-Iweala who threw light on the loan agreement which was signed by the leaders of both countries last week, on the side-lines of the Centenary celebrations, said the fund is to assist in increasing transmission base in Abuja.

The Co-ordinating Minister for the Economy noted that what has been done already is the sale of the distribution and generation companies in the power sector which does not relate to transmission that the government still hold in regulation.

The Federal Government has also agreed to float diaspora bonds to the tune of $300 million. The project, according to the federal government, will enable Nigerians abroad to invest in economic rewarding ventures in the country.

Okonjo-Iweala said the bonds were pegged at $200 million until studies showed increase in interest by subscribers abroad.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s