The federal government is expecting a fresh $2.2 billion single-digit interest loan from the World Bank and another budget support facility from the African Development Bank (AfDB).
The Minister of Finance, Wale Edun, disclosed this during a press briefing at the end of Nigeria’s activities at the World Bank/IMF Spring Meetings in Washington, DC, in the United States.
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While speaking on the sources of international funding for the Nigerian economy, Edun listed diaspora remittances, foreign portfolio investments, and facilities from the World Bank and other international development partners.
He said, “We have qualified for the processing just this week to the Board of Directors of the World Bank of a total package of $2.25 billion of what you can call ‘the closest you can get to a free lunch’; virtually a grant. It’s for about 10- to 20-year moratorium and about one percent interest.
“In addition, there is a 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.”
Edun also tapped 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 said the federal government hoped to issue the bonds later this year.
He highlighted the efforts of the fiscal side of the economy in complementing the recent monetary policy reforms by the Central Bank of Nigeria (CBN).