The Minister of Finance, Wale Edun, announced during a press briefing in Washington DC that the Federal Government is poised to secure a significant loan from the World Bank at a single-digit interest rate, amounting to approximately $2.2 billion. Additionally, there are discussions regarding a budget support facility from the African Development Bank. Edun highlighted various sources of international funding for Nigeria, including diaspora remittances, foreign portfolio investments, and assistance from international development partners.
Edun stated that Nigeria has recently qualified for a substantial loan package from the World Bank, amounting to $2.25 billion, with favorable terms such as a lengthy moratorium period of 10 to 20 years and a low-interest rate of about 1%. He also mentioned the possibility of receiving low-interest funding from the African Development Bank, along with ongoing discussions with foreign direct investors across multiple sectors.
In addition to securing international funding, Edun emphasized the strategy of issuing dollar-denominated securities to attract forex inflows from Nigerians in the diaspora and individuals with foreign-denominated savings within Nigeria. He underscored the collaborative efforts between the fiscal and monetary authorities, as he noted that the government’s issuance of securities at rates aligned with the Central Bank of Nigeria’s monetary policy rate is aimed at combating inflation and encouraging forex inflows.
