Nigeria Pursuing World Bank Loans Worth Up to $2.25 Billion

Nigeria is actively seeking loans from the World Bank totaling up to $2.25 billion. This initiative is aimed at funding critical infrastructural and economic development projects across the country. The move reflects Nigeria's efforts to bolster economic growth and stability by tapping into international financial resources.

‍WASHINGTON, D.C., April 22 (Reuters) - Following the IMF/World Bank spring meetings in Washington, D.C., Nigeria has disclosed its intent to secure World Bank loans amounting to $2.25 billion. The government anticipates the approval of this request by the bank's board in June, as outlined in an official statement.

Additionally, Nigeria aims to bolster its foreign exchange reserves by issuing diaspora bonds later this year, according to Finance Minister Wale Edun's remarks in the same statement.

The proposed World Bank loans consist of $1.5 billion designated for development policy financing and $750 million allocated for program-for-results financing, as detailed in the statement. The final approval of this financial package is slated for discussion during the bank's meeting scheduled for June.

The World Bank has refrained from providing an immediate response to Nigeria's statement regarding the loan request.

Nigeria, traditionally known as Africa's foremost oil exporter, has grappled with a scarcity of foreign exchange, resulting in significant depreciation of its national currency, the naira, against the U.S. dollar earlier this year. However, the currency has since exhibited signs of recovery.

President Bola Tinubu has inherited an economy burdened by substantial debt, elevated unemployment rates, and substantial central bank financing. Nonetheless, Finance Minister Wale Edun recently indicated in an interview with Reuters that the government has managed to reduce federal borrowing from the central bank by half.

Source: Reuters