FG expects a loan of $2.2 billion from the World Bank – Wale Edun

The Federal Government is looking forward to receiving a single-digit interest loan of about $2.2 billion from the World Bank and a new budget support facility from the African Development Bank (AfDB).

Minister of Finance, Wale Edun, made this known on Saturday during the press conference at the end of Nigeria’s activities during the World Bank and IMF Spring Meetings in Washington DC, the United States.

While speaking on the sources of international financing for the Nigerian economy, the minister mentioned diaspora remittances, foreign portfolio investments and facilities from the World Bank and other international development partners.

He stated: “Just this week, we qualified for the World Bank’s Board of Governors to process a total package of $2.25 billion, which is what you could call ‘the closest you can get to a free lunch’ – virtually a subsidy. This involves a moratorium of approximately 10 to 20 years and an interest rate of approximately 1%. In addition, there is similar budget support – low interest financing from the African Development Bank (AfDB), and there are clearly also ongoing discussions with foreign direct investors in many sectors.”

Edun also mentioned the issuance of dollar-denominated securities specifically targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria as another measure to attract currency inflows into the country.

He announced that the federal government hopes to issue the bonds later this year. Furthermore, the Minister highlighted efforts from the fiscal side of the economy to complement the recent monetary policy reforms by the Central Bank of Nigeria (CBN).

According to the minister, the issuance of government bonds at a rate closer to the CBN’s Monetary Policy Rate (MPR) is indicative of the cooperation between both sides of the economy in tackling inflation in the country and attracting currency inflow.

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He identified the agricultural sector as an area where the Bola Tinubu administration aims to boost medium-term growth, noting that efforts in that area include the distribution of fertilizers and seeds to reduce food prices and enhance food security.

Other programmes, according to the minister, include increasing power generation to about 6,000 megawatts within six months, provision of infrastructure, especially housing with the aim of making low interest mortgages available to Nigerians, renewal of the social investment program and proposed economic reforms. stabilization plan.