Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister for the Economy, has disclosed ongoing negotiations with the World Bank to secure a $1.5 billion concessionary loan for budgetary support.
Edun has suggested that the loan is likely to be approved in the near future.
Edun, who confirmed this during a press conference held on the sidelines of the World Bank and IMF annual meetings, stated that the loan request might be on the agenda for discussion at Monday’s upcoming Federal Executive Council meeting.
According to the minister, talks about the loan request have been in progress for an extended duration, and it is anticipated to be provided at an interest rate close to zero, addressing concerns related to mounting debt servicing obligations.
He said:
Recall that in 2020 the World Bank approved a swooping $1.5 billion credit facility for the country, specifically aimed at helping Nigeria bridge its budget funding gap.
This funding was especially crucial due to the dual impact of a sharp decline in global oil prices and the onset of a challenging recession within the nation.
In addition, Nigeria equally secured $3.4 billion in emergency financial assistance from the International Monetary Fund (IMF) through its Rapid Financing Instrument during that period.
