Breaking: Nigeria Bags $10 Billion Loans From Multilateral Organisations – Full Details Inside

The Federal Government has secured over $10 billion in external loans over the past two years, according to data from the Debt Management Office (DMO).....KINDLY READ THE FULL STORY HERE▶

However, Naija News reports that only about half of these funds, roughly $5 billion, have been disbursed so far.

The loans were obtained from multilateral organisations, regional financial institutions, and the international capital market through Eurobonds.

Key Loan Agreements

• Agence France de Développement (AFD): €103.9 million for the Digital and Creative Economy (i-DICE) project, signed on October 4, 2023. The loan carries a 3.5% interest rate, a seven-year moratorium, and matures on October 31, 2043. Only €3.9 million ($4.2 million) has been disbursed so far.

• UniCredit S.p.A. (Italy): €425.7 million to supply six FA aircraft (Tranche A – Defence). The loan has a 3.85% interest rate, a four-year moratorium, and matures on April 17, 2037. Disbursement has not yet started.

• China Development Bank: €883.5 million for the Kaduna-Zaria rail project, signed on December 1, 2023. Interest rate is 4.33%, with a five-year moratorium, maturing on April 20, 2040. To date, €245.2 million ($265 million) has been disbursed.

World Bank Facilities

• $449 million from the International Bank for Reconstruction and Development for the Power Sector Recovery Performance-Based Operations, with a 6.27% interest rate, four-year moratorium, and maturing on April 1, 2058. Disbursement so far is $1.1 million.

• International Development Association (IDA) Loans:

  • XDR 521.3 million for the Adolescent Girls Initiative for Learning and Empowerment (AGILE AF), 2% interest, six-year moratorium, maturing August 15, 2053. Disbursed XDR 41.3 million ($54.8 million).

  • XDR 371.2 million for the Nigeria for Women Scale-Up Project, 2% interest, five-year moratorium, maturing February 15, 2053.

• Islamic Development Bank: ISD 3.56 million for the i-DICE project, with a 5.46% interest rate, five-year moratorium, and maturing December 31, 2046. Disbursed so far: ISD 703,229 ($932,552).

These loans, aimed at boosting infrastructure, defense, and social development projects, are expected to significantly support Nigeria’s economic growth once fully disbursed.

Stay connected via Google News

Follow us for the latest travel updates and guides.