FG Set To Receive $2.2bn World Bank Loan, Says Finance Minister

FG Set To Receive $2.2bn World Bank Loan, Says Finance Minister

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the World Bank board of directors will consider a $2.25 billion loan for Nigeria in two weeks………..CONTINUE READING

Previously, on April 21, the minister revealed that Nigeria had qualified for a $2.25 billion loan from the World Bank at a one percent interest rate.

During an appearance on Channels Television’s ‘Sunday Politics’ program, Edun shared that the country would soon receive part of this funding. He stated, “In two weeks’ time, the World Bank board will consider a $2.25 billion package for Nigeria, which is virtually free money or almost grant funding.”

Edun explained that the loan has a very low interest rate and comes without stringent conditions. He highlighted that $1.5 billion of the loan is designated for ‘development policy operation,’ acknowledging the measures taken to stabilize and grow the Nigerian economy. This portion of the funding is expected to be disbursed shortly after the board meeting.

Expressing confidence in the loan’s approval and disbursement, Edun noted, “This demonstrates our ability to leverage multilateral development banks to our advantage.”

Addressing the issue of multinational companies leaving Nigeria, Edun attributed their exit to the absence of a liquid foreign exchange market. He assured that the government is improving the economic and investment climate to attract and retain multinational investors.

“One of the major drawbacks for exiting multinationals was the lack of a liquid foreign exchange market. Now, we have a willing buyer, willing seller foreign exchange market. While it may not be at the desired levels yet, stabilizing inflation will help stabilize and reduce the exchange rate and interest rates,” he explained.

Edun also pointed out that recent executive orders signed by President Bola Tinubu have enhanced the investment climate, particularly for the gas sector. He expressed optimism about retaining and attracting more multinational companies with the improved environment.

He further mentioned that a proposal aimed at easing operations for both local and foreign manufacturers is included in an Economic Stabilization Package awaiting the President’s approval.

“We are in a challenging situation, but we are moving towards improvement. Every day and every month, we are working towards an improved economic situation for Nigeria,” Edun concluded

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