The President Bola Ahmed-led Federal Government is currently anticipating the receipt of around a $2.2 billion single-digit interest loan from the World Bank and another budget support facility from the African Development Bank (AfDB) in the coming weeks.
Minister of Finance, Wale Edun, made this disclosure during the press briefing at the end of Nigeria’s activities at the World Bank/IMF Spring Meetings in Washington DC, the United States, yesterday.
While speaking on the sources of international funding to the Nigerian economy, the Minister listed diaspora remittances, foreign portfolio investments, and facilities from the World Bank and other international development partners.
He stated, “We have qualified for processing just this week to the Board of Directors of the World Bank of a total package of $2.25 billion, which 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. In addition, there is similar budgetary support—low-interest funding from the African Development Bank (AfDB), and clearly, there are also ongoing discussions with foreign direct investors across many sectors.”
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Edun also mentioned issuing dollar-denominated securities specifically targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria as another measure to attract forex inflows into the country.
He disclosed that the Federal Government hopes to issue the bonds later this year. Furthermore, the Minister highlighted the efforts of the fiscal side of the economy in complementing the recent monetary policy reforms by the Central Bank of Nigeria (CBN).
According to the Minister, the issuing of government securities at an interest rate closer to the CBN’s monetary policy rate (MPR) is an indication of the collaboration between both sides of the economy in tackling inflation in the country and attracting forex inflows
He listed the agricultural sector as one area the Bola Tinubu administration is looking to spur growth in the medium term, noting that efforts in that area include the distribution of fertilizers and seeds to reduce food prices and enhance food security.
Other programs, according to the Minister, are: increasing power generation to about 6,000 megawatts within six months, provision of infrastructure, especially housing with the goal of making low-interest mortgages available to Nigerians, revamping of the social investment program, and proposed economic stabilization plan.