The Federal Government has successfully secured a substantial loan package totaling around $2.2 billion from the World Bank, along with additional budget support from the African Development Bank (AfDB). This development was revealed by Minister of Finance, Wale Edun, during a recent press briefing following Nigeria’s engagements at the World Bank/International Monetary Fund Spring meeting in Washington DC, USA.
Edun emphasized the diverse sources of international funding contributing to Nigeria’s economic stability, including diaspora remittances, foreign portfolio investments, and collaborations with global financial institutions. 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 10- 20 years moratorium and about 1% interest.”
The minister also highlighted ongoing discussions with foreign direct investors across various sectors, signaling a broader strategy to attract investment and bolster economic growth. Additionally, Edun mentioned the issuance of dollar-denominated securities targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria, aiming to enhance foreign exchange inflows.
Moreover, Edun underscored the collaborative efforts between the fiscal and monetary authorities, citing the alignment of government securities’ interest rates with the Central Bank of Nigeria’s monetary policy rate. This alignment aims to address inflationary pressures while attracting more foreign exchange inflows into the country.
This strategic financial maneuver not only secures crucial funding for Nigeria but also sets the stage for enhanced economic stability and growth in the coming years.
