The Federal Executive Council (FEC) has approved financing arrangements worth about $900 million to support agriculture, rural development, technical and vocational education, and Special Agro-Industrial Processing Zones to strengthen food security and stimulate rural economic growth.
The approvals were announced on Monday by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, after the FEC meeting chaired by President Bola Tinubu at the Presidential Villa in Abuja.
According to Oyedele, the agricultural financing package is expected to improve productivity, enhance food security, and accelerate the development of rural communities by supporting investments across key agricultural value chains.
The council also approved a ₦215 billion investment to expand Nigeria’s Compressed Natural Gas (CNG) transport programme, including the procurement of 200 CNG-powered buses aimed at reducing transportation costs for Nigerians.
“As many of you will recall, President Tinubu introduced initiatives on CNG buses, electric vehicles, CNG tricycles and conversion kits. Council today approved the remaining investment needed for the programme. The total amount is about N215 billion for 200 buses,” Oyedele said.
He explained that some aspects of the programme had earlier received anticipatory approval from President Bola Tinubu because of their urgency, while the latest approval authorises the release of the remaining funding.
Oyedele said the government’s objective is not only to expand the use of cleaner energy vehicles but also to reduce public transport costs.
However, he expressed concern that some transport operators benefiting from government-supported CNG initiatives have continued to charge commuters the same fares as operators using petrol-powered vehicles.
“What we found is that the person using CNG is charging the same fare as the person using petrol. That is no longer the government’s responsibility; it is simply people taking advantage of the situation,” he stated.
He urged transport operators receiving subsidised CNG conversion kits and other government support to transfer the resulting cost savings to commuters.
“If we all play our part honestly and think about the interest of our country, we will make progress much faster,” he added.
Beyond agriculture, the council approved two new financing facilities for the Development Bank of Nigeria (DBN) valued at €200 million and $500 million to improve access to affordable credit for micro, small and medium-sized enterprises (MSMEs).
The FEC also approved a $160 million financing package from the Islamic Development Bank for the Niger State Solar Energy Development Project.
According to Oyedele, the Islamic Development Bank will provide $150 million, while the Niger State Government will contribute $10 million as counterpart funding.
In the infrastructure sector, the council approved $1.2 billion for Section II of the Sokoto–Badagry Super Highway project in Kebbi State.
Oyedele said the approvals form part of the Federal Government’s broader strategy to invest in critical infrastructure, strengthen agricultural development, create jobs, and improve living standards across the country.
The approval of funding for agriculture and Special Agro-Industrial Processing Zones is expected to support ongoing efforts to modernise Nigeria’s agricultural sector, improve value addition, strengthen agro-processing, and enhance the country’s long-term food security.
