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).

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.