The federal government is set to secure a substantial $2.2 billion loan from the World Bank, accompanied by additional financial support from the African Development Bank (AfDB).
This was disclosed by Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, following Nigeria’s participation in the just ended World Bank/International Monetary Fund Spring meeting in Washington DC.
Mr. Edun outlined various sources of international funding contributing to Nigeria’s economy, including diaspora remittances, foreign portfolio investments, and partnerships with international development entities.
The recently secured World Bank loan, amounting to $2.25 billion, comes with favourable terms—a long-term repayment period of 10 to 20 years and a minimal interest rate of one percent, almost resembling a grant.
In addition to the World Bank loan, Nigeria is also in talks to receive budgetary support from the AfDB, further bolstering the country’s financial stability.
Mr. Edun highlighted initiatives aimed at attracting foreign currency inflows, such as issuing dollar-denominated securities targeted at Nigerians in the diaspora and those with foreign-currency savings within Nigeria.
Moreover, he emphasised the collaborative efforts between fiscal and monetary policies in addressing economic challenges. The government’s issuance of securities at interest rates aligned with the Central Bank of Nigeria’s monetary policy reflects a concerted approach to combat inflation and stimulate foreign currency inflows.
Overall, these developments signal proactive measures by the Nigerian government to strengthen the economy and foster sustainable growth amidst global uncertainties.
