Nigeria eyes $2.25bn World Bank loan at 1% interest rate— Minister

Nigeria’s Finance Minister, Wale Edun, has disclosed that the nation has qualified to process and secure a $2.25 billion loan from the World Bank.

Mr Edun disclosed this during a joint press conference of the Ministry of Finance and the Central Bank of Nigeria (CBN) at the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington, D.C.

The loan, if secured, could provide crucial support to Nigeria’s economic recovery efforts amidst ongoing challenges.

The World Bank offers low-interest loans, zero-interest credits, and grants to eligible governments to help develop their economies.

According to the minister, the proposed package offers an extended repayment period of 40 years, including a 10-year moratorium, with an interest rate of approximately 1 per cent.

“If you look at the fact that we have qualified for the processing, just this week to the Board of Directors of the World Bank, of the total package of $2.25 billion of what you can call, I mean if there is no such thing as a free lunch, but it is the closest you can get to free money.

“It is virtually a grant. It is for about 40 years, a ten-year moratorium and about 1 percent interest. So that also is part of the flow you can count,” BusinessDay newspaper quoted Mr Edun.

Responding to concerns about debt sustainability, Mr Edun emphasised the importance of generating more revenues, noting that efforts are being made to maximise its benefits for Nigerians.

He said President Bola Tinubu has set ambitious goals to increase oil production from 1.6 million barrels per day to 2 million.

This increase in oil production is expected to bring in more revenues and help manage debt better, even as the government focuses on other ways to make money.

According to him, the federal government plans to increase tax revenue from 10 to 18 per cent of the GDP in a few years and double non-oil revenue to about 22 per cent.

“These measures are crucial for enhancing our fiscal resilience and ensuring long-term economic stability,” he said.