FG unveils fresh transport, MSME and infrastructure funding

The Federal Executive Council (FEC) has approved several short-term and long-term measures aimed at cushioning the impact of current economic challenges, particularly in the transportation sector.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while briefing State House correspondents after the FEC meeting presided over by President Bola Tinubu.
Oyedele said the Federal Government is intensifying efforts to reduce the cost of public transportation through various initiatives. He explained that, in addition to existing budgetary provisions for the Compressed Natural Gas (CNG) programme, the Council approved an additional N215 billion to strengthen the project.
According to him, the ministry has also held meetings with filling station operators and regulators to encourage reductions in fuel prices following the decline in global crude oil prices.
He, however, attributed the slow adjustment in pump prices to marketers’ existing fuel stock.
“We expect operators to adjust prices quickly when crude oil prices fall, but their explanation is that they have to clear old stock purchased at higher prices, which they describe as replacement cost.
“If you were selling at N1,000 per litre and prices increased, you would immediately adjust because selling at the old price would not be sustainable. However, when prices fall, reductions are often delayed because of unsold inventory. This is a balance we must manage.
“While we do not want businesses to suffer losses, we also do not want consumers to be exploited. Regulators have an important role to play in ensuring fairness.”
The minister noted that the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority are working to ensure that fuel prices remain market-driven without taking advantage of Nigerians.
He also highlighted the Federal Government’s significant investment in CNG conversion kits and infrastructure to make public transportation more affordable.
Oyedele, however, criticised operators of government-subsidised CNG vehicles who still charge passengers the same fares as petrol-powered vehicles.
“What we discovered is that operators using CNG are charging the same fares as those using petrol. That is no longer a government issue; it is people taking advantage of the situation.
“If everyone plays their part honestly and considers the interest of the country, we will make faster progress.”
The Council also approved several projects for the Ministry of Marine and Blue Economy, including two pollution control boats valued at N59.52 billion for operations in Port Harcourt, six pilot boats worth N80.2 billion, two firefighting boats costing N34.59 billion, and a N112.8 billion channel clearance project aimed at improving navigation, ensuring safety and addressing environmental concerns.
Providing further details on the Council’s decisions, Oyedele said about 14 memoranda were considered.
He explained that the transport package includes investments in CNG buses, electric vehicles, CNG-powered tricycles and conversion kits. He said some of the investments had already commenced with presidential approval due to their urgency, while the Council has now approved the remaining funding.
According to him, the total allocation covers 200 buses at a cost of about N215 billion.
He added that the Council also approved financing arrangements totalling 900 million US dollars for agriculture, rural technical and vocational training, Special Agro-Industrial Processing Zones and agricultural value chain growth projects.
In the power sector, FEC approved a 160 million US dollars credit facility from the Islamic Development Bank for the Niger State Solar Energy Development Project. The bank will provide 150 million US dollars, while the Niger State Government will contribute 10 million US dollars as counterpart funding.
On infrastructure, the Council approved 1.2 billion US dollars for Section Two of the Sokoto-Badagry Super Highway project in Kebbi State.
The Council also approved affordable financing packages for small businesses, including 200 million euros and 500 million US dollars, to be channelled through the Development Bank of Nigeria to improve access to low-cost credit for Micro, Small and Medium Enterprises (MSMEs).