The Federal Executive Council (FEC) on Wednesday approved a $1.3 billion loan credit facility for the commencement of the Development Bank of Nigeria.
The approval came on the heels of a memo submitted by the Finance Minister, Kemi Adeosun, seeking council’s ratification on the loan request.
Adeosun, who briefed State House correspondents on the outcome of FEC meeting which was presided over by President Muhammadu Buhari, said $500 million of the amount would come from the World Bank.
The minister disclosed that $450 million is expected from the African Development Bank and $200 million from KFW, a financial corporation.
$130 million would come from the French Development Agency to make up the $1.3 billion earmarked for the commencement of the bank.
According to her, the loans are also concessionary with interest rates of less than two percent and have very long repayment periods of up to 21 years.
The loans are aimed at allowing the bank to lend to Small and Medium Enterprises (SMEs) for a longer period with interest rate lower than in commercial banks.
Adeosun also said that the council approved N550 million contracts to hire project managers and verification consultants for the integration of the military’s payroll into the Integrated Payroll and Personnel Information System (IPPIS).
She said that 200,000 military personnel would be integrated into IPPIS.
