Nigeria goes for $2.2bn loan from World Bank, budgetary support from AfDB

The Federal Government is set to receive a $2.2 billion loan from the World Bank at a low interest rate of about 1%.

This is even as the country is poised to get another budget support facility from the African Development Bank (AfDB).

Wale Edun, Minister of Finance, and Coordinating Minister of the Economy, Wale Edun made this known during a press briefing at the end of Nigeria’s activities at the World Bank/IMF Spring Meetings in Washington DC, the United States on Saturday.

“We have qualified for the processing just this week to the Board of Directors of the World bank of a total package of $2.25 billion of what you can call ‘the closest you can get to a free lunch’- virtually a grant. It’s for a 10- 20 years moratorium and about 1% interest.

“In addition, there is a similar budgetary support – low-interest funding from the African Development Bank (AfDB) and, clearly, there are also ongoing discussions with foreign direct investors across many sectors.”

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Edun also listed diaspora remittances, foreign portfolio investments and facilities from the World bank and other international development partners as sources of international funding to the Nigerian economy recently.

He also disclosed that the country is poised to issue dollar-denominated securities specifically targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria as another measure to attract forex inflows into the country.

He disclosed that the Federal Government hopes to issue the bonds later this year.

By Babajide Okeowo

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