Federal Government Awaits $2.2 Billion Loan from World Bank, According to Wale Edun

The Federal Government is anticipating a $2.2 billion single-digit interest loan from the World Bank, along with additional budgetary support from the African Development Bank (AfDB).

Wale Edun, the Minister of Finance, revealed this during a press briefing at the conclusion of Nigeria’s engagements at the World Bank/IMF Spring Meetings in Washington DC, United States, on Saturday.

Highlighting various sources of international funding for Nigeria’s economy, the Minister mentioned diaspora remittances, foreign portfolio investments, and support from international development partners such as the World Bank.

He stated, “We have recently qualified for processing to the World Bank’s Board of Directors for a total package of $2.25 billion, akin to virtually a grant with a 10- to 20-year moratorium and about 1% interest.”

Additionally, Edun mentioned similar low-interest budgetary support from the AfDB and ongoing discussions with foreign direct investors across various sectors.

Edun also discussed the issuance of dollar-denominated securities targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria, aiming to attract foreign exchange inflows into the country. He revealed plans for the Federal Government to issue these bonds later this year.

Furthermore, the Minister highlighted the fiscal side’s efforts to complement recent monetary policy reforms by the Central Bank of Nigeria (CBN). He emphasized collaboration between both sides of the economy to address inflation and attract forex inflows.

Edun outlined various programs, including initiatives to stimulate growth in the agricultural sector, increase power generation, provide infrastructure like housing, revamp social investment programs, and propose an economic stabilization plan.