The Federal Executive Council has approved a loan of about $618m from a group of financiers for the procurement of six fighter aircraft and ammunition for the Nigerian Air Force. This was disclosed by the Minister of Information and National Orientation, Mohammed Idris, in Abuja, on Wednesday, following the conclusion of the FEC meeting presided over by President Bola Tinubu, reports Voice of Nigeria. Also on Wednesday, the FEC approved N740bn for the Berger stretch of the Abuja-Kano route, among other high-profile road projects. Idris, who stood in for the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said, “From the Honorable Minister of Finance, who is away on official duty in the United States, I’m going to let you know what those FEC approvals are. “The first one is that there have been approvals for some contracts, about seven of them for the Nigerian Customs Service. “The next one is that there’s an approval for an agreement for the elimination of double taxation with respect to taxes on income and prevention of tax evasion and avoidance between the Federal Republic of Nigeria and the Hong Kong Special Administrative Region of the People’s Republic of China. “The third one is an approval to obtain a credit facility of 443,330,781.49 euros and another $141m from a group of financiers for the procurement of six units of M346 fighter aircraft and ammunition for the Nigerian Air Force. “And the last one from the Federal Ministry of Finance is the approval for signing of an agreement for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance between the Federal Republic of Nigeria and the Republic of Botswana.” Earlier in October, the Air Force said it was acquiring 24 M-346 combat jets and 10 AW109 Trekker helicopters as part of a fleet renewal strategy. The first three M-346 jets are expected to be delivered by early 2025, with subsequent deliveries running until mid-2026. At the press briefing, it was also revealed that the FEC had approved the establishment of the Creative Economy Fund to ensure the deepening of the sector. Minister of Arts, Culture, Tourism and Creative Economy, Hannatu Musawa, told State House correspondents that the council approved the establishment of the fund. “FEC gave approval for the creation of a Creative Economy Development Fund. “This is a special purpose vehicle that will allow members within the creative economy to have access to funding and use their IP as collateral in terms of monetisation. “We identified very early on that the very basic structures in order for us to really tap into the potential of the creative economy were missing. “So, we got to work in putting up those structures. IP policy is one of those very basic structures that was missing. We are working together with the Ministry of Industry, Trade and Investment and with the Ministry of Justice to ensure that we deliver IP policy, hopefully within the maximum, at the very last phase, within the next two weeks. “This is a special purpose vehicle that will give them funding that will be able to allow us to leverage funding that we’re getting. We already have a commitment, for example, from Afreximbank that has committed to giving us $200m and a number of other sources. “So, this is a special purpose vehicle that will allow us to give this funding to members within the community. And hopefully, we’ll be able to tap into the potential and reach our targets of economic expansion, creative expansion, cultural expansion and of course job creation, specifically for a younger demographic,” the minister added. N740bn for Abuja – Kano road The Minister of Works, Dave Umahi, clarified the government’s approach to managing the extensive backlog of infrastructure projects. He announced that the Shagamu-Benin road was undergoing major rehabilitation, while procurement processes were being finalised for its full reconstruction using reinforced concrete pavement. Also, the Abuja-Kano road, previously slated for a tax credit arrangement, will now be procured without such a provision, with the 162-kilometre Berger section already approved for N740bn. Umahi highlighted several other projects, including the commencement of construction on the Sokoto-Badagry road, with the Sokoto section to be flagged off imminently. Furthermore, he said works would resume on the Oyo-Ogbomoso road, a project which has been at a standstill for 18 years. He also said the Makurdi-Katsina-Ala road would undergo significant repairs. Umahi said FEC also addressed the inherited debt profile of N1.6tn tied to 2,604 projects, with a total contract value of N13tn. He said the Ministry of Works had initiated a phased approach to project completion based on available funding, to manage the backlog. Biu-Kangiwa-Kamba-Kaya Niger Republic road in Kebbi State, the Yola-Hong-Mubi road in Adamawa State and the Kachako-Dambazua road in Kano State. The council further approved advanced payment mechanisms to address inflation and rising costs driven by fluctuating exchange rates and petroleum prices. Umahi explained, “And finally, we presented a memo to FEC that where there is proof of funds, there are available funds, the Procurement Act allows MDAs to pay a maximum of 30 per cent advance payments. “Let me emphasise that this advanced payment, when you read the law, it says ‘may pay.’ And so when people are giving contracts and they don’t mobilise, and they said, I’ve not paid mobilisation, it is not legally binding, because the word says may pay. And so some people turn it shall pay. So no, it may pay. “So where we have funds, and they will have a valuable fund beyond this 30 per cent so what we are, you know, we requested from FEC is approved, that we first pay 30 per cent which is the Procurement Act, and not more, and then when the contractor has started work, and to the satisfaction of the Ministry of Works, we should be allowed to pay additional funds.” He continued, “Yes, the law allows us to pay in terms