Nigeria expecting $2.2bn loans from World Bank – Minister

Alex Omenye
Alex Omenye

The Federal Government is anticipating approximately $2.2 billion in single-digit interest loans from the World Bank, along with a budget support facility from the African Development Bank.

This was revealed by Finance Minister Wale Edun during a press briefing at the conclusion of Nigeria’s participation in the World Bank/IMF Spring Meetings in Washington DC, USA, on Saturday.

Discussing the sources of international funding for the Nigerian economy, the Minister highlighted diaspora remittances, foreign portfolio investments, and assistance from the World Bank and other international development partners.

Edun disclosed, “We have secured approval from the World Bank Board of Directors this week for a total package of $2.25 billion, which can be likened to ‘virtually a grant.’ It entails a moratorium period of about 10-20 years and an interest rate of about 1%.”

He further noted, “Additionally, there is a similar low-interest budgetary support from the African Development Bank, and ongoing discussions with foreign direct investors in various sectors.”

The Minister also discussed issuing dollar-denominated securities aimed at Nigerians in the diaspora and those with foreign currency savings in Nigeria to attract forex inflows, with plans to issue the bonds later this year.

Furthermore, Edun emphasized the collaboration between the fiscal and monetary sides of the economy in addressing inflation and attracting forex inflows. He cited the issuance of government securities at interest rates closer to the Central Bank of Nigeria’s monetary policy rate (MPR) as evidence of this collaboration.

Highlighting the agricultural sector as a focus area for growth, the Minister outlined initiatives such as fertilizer and seed distribution to reduce food prices and enhance food security under the Bola Tinubu administration’s medium-term goals.

Other programs include increasing power generation to 6000 megawatts within six months, infrastructure development to make low-interest mortgages available, revamping the social investment program, and proposing an economic stabilization plan.

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