FG to secures $2.25bn World Bank loan

The federal government has concluded plans with the World Bank for a facility worth $2.25 billion. The facility is a single-digit interest loan from the World Bank.

Minister of Finance, Wale Edun disclosed this during the press briefing at the end of Nigeria’s activities at the World Bank/IMF Spring Meetings in Washington DC, the United States on Saturday, saying the country is expecting another one from the African Development Bank (AfDB).

This is just as Governor of the Central bank of Nigeria (CBN) Yemi Cardoso says the Naira has been adjudged the best performing currency globally in the month of April.

While speaking on the sources of international funding to the Nigerian economy, the Minister listed diaspora remittances, foreign portfolio investments and facilities from the World Bank and other international development partners.

He stated, “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 about a 10- 20 years moratorium and about one per cent 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.”

Edun also tapped issuing 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.

Furthermore, Edun highlighted the efforts of the fiscal side of the economy in complimenting the recent monetary policy reforms by the Central Bank of Nigeria (CBN).

According to the minister, the issuing of government securities at an interest rate closer to the CBN’s monetary policy rate (MPR) is an indication of the collaboration between both sides of the economy in tackling inflation in the country and attracting forex inflows.

He listed the agricultural sector as one area the Bola Tinubu administration is looking to spur growth in the medium term, noting that efforts in that area include the distribution of fertilisers and seeds to reduce food prices and enhance food security.

Other programs, according to the Minister, are: increasing power generation to about 6000 megawatts within six months, provision of infrastructure especially housing with the goal of making low-interest mortgages available to Nigerians, revamping of the social investment program and proposed economic stabilisation plan.