FG Approves ₦215bn CNG Programme, $900m Agriculture Package and $1.2bn Highway Project

The Federal Executive Council (FEC) has approved a series of major financing packages covering transportation, agriculture, infrastructure, renewable energy and small businesses, including ₦215 billion for the expansion of Nigeria's Compressed Natural Gas (CNG) transport programme.

The approvals were announced on Monday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, after the council meeting chaired by President Bola Tinubu at the Presidential Villa, Abuja.

According to the minister, the funding forms part of the Federal Government's strategy to reduce transportation costs, strengthen food security, expand access to affordable financing and stimulate long-term economic growth.

Oyedele said FEC approved the remaining investment required for the government's CNG transport initiative, bringing the total investment to approximately ₦215 billion.

The funding includes the procurement of 200 CNG-powered buses, expanding the administration's clean energy transport programme.

He explained that some aspects of the programme had previously received anticipatory approval from President Tinubu because of their urgency, while Monday's decision formally cleared the outstanding funding.

"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 ₦215 billion for 200 buses," Oyedele said.

The finance minister said the objective of the programme extends beyond introducing alternative fuel vehicles to making public transportation more affordable for Nigerians.

He however, expressed concern that some transport operators benefiting from government-supported CNG vehicles continue 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 government's responsibility; it is simply people taking advantage of the situation," he said.

Oyedele urged transport operators receiving government support through subsidised CNG conversion kits and related interventions to transfer the cost savings to passengers.

"If we all play our part honestly and think about the interest of our country, we will make progress much faster," he added.

Beyond transportation, the council approved financing arrangements valued at approximately $900 million to support agriculture, rural development, technical and vocational education and Special Agro-Industrial Processing Zones.

According to the minister, the financing is expected to improve agricultural productivity, enhance food security and stimulate economic activities in rural communities.

FEC also approved two separate financing facilities for the Development Bank of Nigeria (DBN) to expand access to affordable credit for micro, small and medium-sized enterprises (MSMEs).

The facilities comprise:

€200 million

$500 million

Oyedele said the funds would enable the DBN to provide lower-cost financing to businesses across the country.

The council further approved a $160 million financing package from the Islamic Development Bank for the Niger State Solar Energy Development Project.

According to the minister, the Islamic Development Bank will provide $150 million, while the Niger State Government will contribute $10 million as counterpart funding.

In the infrastructure sector, FEC approved $1.2 billion for Section II of the Sokoto–Badagry Super Highway project in Kebbi State.

Oyedele said the approvals reflect the Tinubu administration's broader strategy of investing in critical infrastructure while supporting economic expansion, job creation and improved living standards across the country.