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World Bank, AfDB may soon approve Nigeria’s $3.5bn loan facilities –Moody
With the relative stability in the Niger Delta and improved oil price in the international market, Nigeria’s loan requests with the World Bank and the African Development Bank (AfDB), totaling $3.5 billion may be approved in 2017, according to an international investment advisory agency, Moody.
But despite the perceived positive development in Nigeria’s economy, Moody said the International Monetary Fund (IMF) would still not bulge in its stance on Nigeria embarking on elaborate reforms before any assistance could come from it.
A statement credited to Moody’s Vice President and Senior Analytical Adviser for Africa, Aurelien Mali, said 2016 was the worst economic year for Nigeria, even though signs of distress in its economy could be traced back to 2012.
He said the international financial institutions, at least the World Bank and African Development Bank (AfDB), as far as the loan request is concerned will make it available, and that “the budget support from the World Bank will come on top of that.”
Read also: Why Nigeria relied on internal borrowing to source N1.12trn deficit in 2016 budget – CBN
In its February 2017 rating, the international agency had grouped Nigeria among countries with B1 credit rating, alongside Seychelles, Iraq and Kenya.
It would be recalled that Nigeria had adopted internal borrowing approach to fund its 2016 budget following the refusal of the foreign borrowing agencies to oblige its loan requests.
But the country recorded a huge success in its February 2017 $1bn Eurobond sales, which has seen with plans to go for another $50m as all motion towards pursing this has reached advanced stage.
However, a financial analyst, Mike Udah, said, “for Nigeria to move forward it must listen to the advice of the IMF on government the shedding load from public assets and allowing naira’s exchange value be market-forces driven.”
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