Nigeria is expecting $2.2 billion loan with a single-digit interest rate from the World Bank, along with a budget support facility from the African Development Bank (AfDB).
This was revealed by the Minister of Finance, Wale Edun, during a press briefing at the conclusion of Nigeria’s participation in the World Bank/IMF Spring Meetings in Washington DC, United States on Saturday.
The Minister said Nigeria has recently been approved for a total package of $2.25 billion from the World Bank, which he described as almost a grant with a 10-20 year moratorium and a 1% interest rate.
“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- 20 years moratorium and about 1% interest.
Nigeria’s New Eurobond
Additionally, the Minister mentioned receiving low-interest funding from AfDB and ongoing discussions with foreign direct investors in various sectors.
Also Read:Â JP Morgan Among Managers to Assist Nigeria in its Upcoming Eurobond
He also said Nigeria is likely to issue dollar-denominated securities (Eurobond).
The Bond will target Nigerians in the diaspora and those with foreign currency savings in Nigeria to attract foreign exchange inflows.
The issuance of government securities will be at rates closer to the Central Bank of Nigeria’s monetary policy rate (MPR.
It is meant to address inflation and attract foreign exchange inflows.
Key Areas to Fuel Nigeria’s Economy
The agricultural sector was identified as a key area for growth, with initiatives such as distributing fertilizers and seeds to lower food prices and improve food security.
Other programs outlined by the Minister include increasing power generation to 6000 megawatts within six months, enhancing infrastructure development, particularly in housing to make low-interest mortgages accessible to Nigerians, revamping the social investment program, and proposing an economic stabilization plan.
These efforts are aimed at fostering economic growth and stability in Nigeria.
