Nigeria borrows $9bn from World Bank in 30 months

The World Bank has revealed that it has given out loans of $9 billion to the federal government of Nigeria over the last 30 months.

However it noted that the loans were given at extremely low interest rates.

The global bank stated this on Thursday in Abuja at the launch of the World Bank’s Nigeria Development Update (NDU) and Country Economic Memorandum

The World Bank said Nigeria could become a rising star again if it implements a comprehensive set of bold reforms in a timely manner.

Some of the reforms the world bank is proposing include ending fuel subsidies and adopting a single, market-reflective currency rate if it wants to break out of its present economic rot.

Other reforms suggested by the World Bank to the Nigerian government are increase in non-oil revenues by raising Value Added Tax and strengthening tax reforms, containing inflation by reducing Federal Government’s recourse to CBN financing; reducing insecurity by strengthening rule of law; facilitating trade and boost domestic value addition by removing import and foreign exchange restrictions; increase access to finance by strengthening institutional infrastructure for financial intermediation and boost power generation by investing in infrastructure to reduce technical and commercial losses amongst others.

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Specifically, the report said unlocking private investment would enable the creation of more and better-quality jobs in a sustainable manner.

The World Bank and its ally, the International Monetary Fund (IMF) have been consistent in advising the Nigerian government to halt fuel subsidy and embrace a uniform exchange rate.

In his remark, World Bank’s Country Director, Shubham Chaudhuri, reiterated the bank’s mission to its host country, which he said “is to help host country eliminate poverty and makes life better.”

He said the bank was able to attract funds in excess of over $9 billion for financing into Nigeria in the past 30 months on concessionary rates.

“These funds are not donation, they are concession. We should be seen as trust partner. Whatever we can do to help Nigeria we will do. The NDU report is part of the help.

“Nigeria’s future is full of potential and how it can get there. We are here as a partner. We will provide advice, we will never dictate. Nigeria is giant of Africa,” World Bank Country Director said.

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