The federal government has announced the acquisition of a fresh $2.2 billion loan with single-digit interest rates from the World Bank, alongside another budget support initiative from the African Development Bank (AfDB).
During a press briefing at the conclusion of Nigeria’s participation in the World Bank/International Monetary Fund (IMF) Spring Meetings in Washington DC, Minister of Finance, Wale Edun, revealed these developments.
Discussing the sources of international funding for Nigeria’s economy, Edun mentioned diaspora remittances, foreign portfolio investments, and support from various international development partners.
Edun elaborated, stating, “We have recently qualified for a total package of $2.25bn from the World Bank, resembling something akin to a grant with an extended repayment period spanning 10 to 20 years and an interest rate of about one per cent.”
Additionally, Edun outlined plans to issue dollar-denominated securities, specifically targeting Nigerians in the diaspora and those with foreign currency savings in Nigeria, aiming to stimulate forex inflows into the country. The issuance of these bonds is anticipated later in the year.
He underscored the fiscal sector’s efforts to complement recent monetary policy reforms initiated by the Central Bank of Nigeria (CBN).
