Nigeria secures World Bank’s $2.25bn loan at 1% interest rate

Minister of Finance, Wale Edun

The Federal Government had secured a $2.25 billion single-interest loan from the World Bank.

The facility offers a 40-year-term with 10 years moratorium at one per cent interest rate.

Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, said the bank’s board of directors had approved the credit, currently under processing.
The minister made the disclosure while briefing journalists at the just-concluded Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington D.C. on Sunday, April 21, 2024.

Edun described the loan as a “free lunch”.

The minister noted that the loan was the “closest you can get to free money”.
He also disclosed that Nigeria is awaiting budgetary support and low-interest funding from the African Development Bank (AfDB).

Edun said: “We have qualified for the processing just this week to the Board of Directors of the World bank of a total package of $2.25 billion of what you can call ‘the closest you can get to a free lunch’ – virtually a grant. It’s for about 10- 20 years moratorium and about 1% interest.

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“In addition, there is a similar budgetary support – low-interest funding from the African Development Bank (AfDB) and, clearly, there are also ongoing discussions with foreign direct investors across many sectors.”

The minister also spoke on efforts to boost capital inflows into the country.

According to him, “In terms of remittances, it is one of how we can boost foreign exchange supply and funding for investment in the country. There are Nigerians abroad, they are doing very well. They have significant funding. There are even Nigerians in Nigeria with funds abroad. That too would be counted as a remittance.
“And to help the issue of supply of foreign exchange to the Nigerian economy, the government is looking at attracting those funds and capturing those funds through a diaspora type of instrument, a diaspora bond.”

The Star