The Federal Executive Council (FEC) has approved a $1.25 billion financing facility from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) to support Nigeria’s investment and job acceleration development policy.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while briefing State House correspondents on the decisions reached at Wednesday’s FEC meeting.
Oyedele described the facility as concessional, with a repayment period of about 30 years, saying the funds would be dedicated to accelerating job creation in Nigeria.
“This is a concessional facility with repayments of like 30 years, which we’re going to dedicate into helping to accelerate job creation,” he said.
The minister stressed that creating jobs remains one of Nigeria’s major priorities, given the need to expand economic opportunities for citizens.
“And you would agree that if we have any priority as a country, this clearly has to be one of it,” he said.
FG Approves Three Double Taxation Treaties
The Federal Executive Council also approved the signing of double taxation avoidance treaties between Nigeria and three countries: Ghana, Tanzania and Switzerland.
Oyedele explained that the agreements are designed to create better opportunities for Nigerian businesses to invest in those countries while also encouraging businesses from the three countries to invest in Nigeria.
He said the treaties were particularly important with countries where Nigeria has significant economic interests, citing Ghana as an example.
“The overall objective of these treaties is to ensure that Nigeria can expand the opportunities available to our businesses to invest in other countries, and also for us to attract investment from those other countries,” he said.
Nigeria Targets Stronger Tax Treaty Network
According to Oyedele, the Federal Government is working towards developing a stronger network of tax treaties that will enable Nigeria to compete more effectively with other leading African economies.
He cited South Africa as an example, noting that the country has approximately 60 double taxation treaties.
“But we’re making good progress,” Oyedele said.
The approval of the $1.25 billion financing facility and the three tax treaties were among the key decisions announced following the FEC meeting.
While the financing is intended to support investment and accelerate job creation, the tax agreements are expected to expand investment opportunities for Nigerian businesses abroad and attract more foreign investment from Ghana, Tanzania and Switzerland into Nigeria.
Source: Federal Executive Council / Taiwo Oyedele
