FG approves N4.34tn financing for transport, agriculture, power, others

The Federal Government of Nigeria has approved a substantial N4.34 trillion in financing across five critical sectors: transportation, agriculture, power, infrastructure, and small business credit. This significant financial commitment was formalized during the Federal Executive Council meeting, presided over by President Bola Tinubu at the State House in Abuja.

This meeting was the first in approximately three months, following the council's last session on March 4, 2026. The approved funds are distributed across 14 distinct memos presented by the Ministry of Finance, signaling a strategic push towards economic development and infrastructure enhancement.

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We had 14 memos for the Ministry of Finance. You would imagine I’m not going to take you through all of them one by one, but council made very strategic decisions, which I have decided to categorise under five headings.

Key allocations include N215 billion in naira-denominated investments for the transportation sector, focusing on initiatives like the CNG bus program, electric vehicles, and CNG-powered tricycles and conversion kits. The government aims to unlock the remaining investment tranches necessary to complete these programs, building on anticipatory approvals made by the President due to the urgency of these interventions.

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As many of you will recall, Mr President had introduced initiatives on CNG buses, electric vehicles, CNG fuel tricycles and conversion kits. Some of these investments had already been made based on anticipatory approval by Mr President, given the urgency of those interventions and council today approved.

In the agricultural sector, a combined $900 million will support agricultural and rural development, including technical-vocational training, special agro-industrial processing zones, and green valuation for growth projects. Additionally, a $160 million credit facility from the Islamic Development Bank, with a $10 million counterpart contribution from Niger State, will fund solar energy development projects in Niger State.

Infrastructure development also received a major boost with approximately $1.2 billion approved for Section Two of the Sokoto-Badagry Super Highway, specifically covering the Kebbi State portion of the corridor. Furthermore, a combined $500 million and €200 million will be directed towards MSME financing through the Development Bank of Nigeria, aiming to bolster small and medium-sized enterprises.

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I attended the AGM of the Islamic Development Bank about one or two weeks ago, and these were some of the conversations we had on how to finance development using concessional facilities.