Nigeria Secures a Fresh Loan of $1.5b from World Bank, $80m from ADB
The Federal Government on Monday, October 16,announced that it has obtained financial support from the World Bank and the African Development Bank.
The loans valued at $1.5bn and $80m respectively, will be used to fund important projects in key sectors of the economy. Nigeria was deemed eligible for these loans due to its recent positive macro-economic actions under President Bola Tinubu's leadership.
According to Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, the Federal Government will receive $1.5bn in its entirety by the year's end, as long as it meets its obligations. He clarified that the Federal Executive Council (FEC) has granted approval for funding from the World Bank, specifically from the International Development Association, which is the lending arm with low or no interest rates.
Edun stated that the country has implemented various macroeconomic measures and made difficult choices to stabilize its economy, which led to the need for assistance from international development organizations.
He said, "It is based on what the World Bank is willing to consider and to process on our behalf $1.5bn of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly. And it comes in one go. It doesn’t drip as will be done for a project and is just to support the reform effort. And that was what was presented to the Federal Executive Council, and the members approved that we go ahead with that financing given that it is affordable.”
The council also approved a loan of $80m from ADB for the Ekiti Knowledge Zone Project. The Minister explained that the main purpose of the project is to aid young individuals in utilizing technology to secure employment, receive training, and reap the benefits of being part of the knowledge economy.
This initiative aligns with Nigeria's growing technological advancements, which play an increasingly significant role in the country's economy.
