President Bola Tinubu’s government is set to receive a fresh $2.2 billion single-digit interest loan from the World Bank, according to the Minister of Finance, Wale Edu.
The Federal Government will also receive a budget support loan from the African Development Bank (AfDB) in the coming weeks.
This announcement was made by Edun during a press briefing at the end of Nigeria’s activities at the World Bank/International Monetary Fund Spring Meeting in Washington DC, United States.
Edun revealed the various sources of international funding to the Nigerian economy, including diaspora remittances, foreign portfolio investments, and facilities from the World Bank and other international development partners.
He stated that Nigeria has qualified for a total package of $2.25 billion from the World Bank, which can be considered as “the closest you can get to a free lunch.”
“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 10- 20 years moratorium and about 1% interest,” Edun said.
“In addition, there is a similar budgetary support – low-interest funding from the African Development Bank (AfDB) and, clearly, there are ongoing discussions with foreign direct investors across many sectors.”
This package comes with a moratorium of 10-20 years and an interest rate of about 1%. In addition to the World Bank loan, there are ongoing discussions with foreign direct investors across various sectors.
The government is also considering issuing dollar-denominated securities specifically targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria to attract forex inflows into the country.
The Minister of Finance spoke on the efforts of the fiscal side of the economy in complementing recent monetary policy reforms by the Central Bank of Nigeria.
Article updated 2 weeks ago. Content is written and modified by multiple authors.
