Government gives green light to N4.34 trillion funding package for key sectors including transportation, farming, electricity and more

The Federal Government has given the green light to a massive N4.34tn financing package, spread across five key sectors: transportation, agriculture, power, infrastructure, and small business credit, following a meeting of the Federal Executive Council presided over by President Bola Tinubu.

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This crucial meeting, held at the Council Chamber of the State House in Abuja, marked the first gathering of the council in approximately three months, since its last meeting on March 4, 2026, when President Tinubu swore in Inspector-General of Police, Tunji Disu.

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The approvals encompass 14 separate memos presented by the Ministry of Finance, covering a broad range of investments, including N215bn for transport initiatives, $900m (approximately N1.24tn) for agricultural and rural development, and $160m (approximately N220.6bn) for solar energy projects in Niger State.

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A significant $1.2bn (approximately N1.65tn) has been allocated for the development of the Sokoto-Badagry Super Highway, while a combined $500m (approximately N689.5bn) and €200m (approximately N315.6bn) will be channelled towards MSME financing through the Development Bank of Nigeria.

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Briefing State House correspondents after the meeting, Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, outlined the strategic decisions made by the council, categorizing them under five key headings to provide clarity on the approvals.

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Regarding transportation, Oyedele explained that the council ratified a series of previously anticipated presidential approvals, covering initiatives such as the CNG bus project, electric vehicles, and CNG-powered tricycles, unlocking the remaining investment needed to complete these programmes, totaling approximately N215bn.

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Oyedele noted that the council approved four memos on agricultural development, valued at a combined $900m, covering financing for agricultural and rural technical-vocational training, special agro-industrial processing zones, and green valuation for growth projects.

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A $160m credit facility from the Islamic Development Bank was approved for Niger State solar energy development projects, with the Islamic Development Bank providing $150m and the Niger State government contributing $10m as counterpart funding.

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Oyedele also secured council approval for approximately $1.2bn in financing for section two of the Sokoto-Badagry Super Highway, covering the Kebbi State portion of the corridor.

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The final category of approvals covered two memos providing affordable financing for small businesses, totaling €200m and $500m, to be channelled through the Development Bank of Nigeria, aimed at supporting the bulk of employment and economic activities in Nigeria.

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Oyedele emphasized the importance of supporting small businesses, stating that this financing will provide access to affordable credit, thereby supporting the sector and the country as a whole.

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Addressing concerns about fuel pump prices, which remain elevated despite a decline in global crude oil prices, Oyedele revealed that a structured process is underway to address the asymmetric pricing problem, where operators quickly adjust prices upward when costs rise but resist downward adjustments when they fall.

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Oyedele noted that regulators, including the Federal Competition and Consumer Protection Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, are working to ensure market-reflective prices that do not exploit consumers.

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He pushed back against suggestions that the government's transport cost-mitigation measures had failed, highlighting that fuel products in Nigeria currently attract no taxes, following presidential suspensions of VAT, excise, and surcharge.

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Oyedele argued that the government's interventions have prevented an even worse situation, pointing out that pump prices in neighboring countries are between 20 and 50 per cent lower than in Nigeria, thanks to the suspensions.

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He appealed to operators who have converted to CNG, a cheaper fuel than petrol, to reconsider charging passengers the same fares as petrol-powered vehicles, emphasizing the need for honesty and fairness in the interest of the country.