Nigeria Seeks $2.3bn Loans From World Bank, China
By Victor Ernest with agency reports
Nigeria’s Minister of Finance Kemi Adeosun on Tuesday disclosed to CNBC that the Nigerian government intends to borrow $1 billion from the World Bank and another $1.3 billion from China’s Export-Import Bank.
She said the Federal Government officials handling the acquisition of the loan would finalise the proposal to the World Bank this month.
Adeosun disclosed that the Nigeria plans to use the $1.3 billion loan from China’s Export-Import bank, which it is hoping to sign in the next few months, to fund railway projects across the country.
Also, the Minister stated that government would not apply for an International Monetary Fund programme because the country already has its own economic reform plan.
Sharp falls in the price of crude oil, which have made the naira to tumble following the steep fall in foreign exchange revenue, have plunged the economy into its first recession in 25 years.
This has prompted suggestions that the country may need the IMF funding to cover a growing budget deficit.
The minister stated that non-oil revenues were improving while the government was working on an economic reform plan needed to support an application for a loan of at least $1bn from the World Bank.
Meanwhile, the government is also seeking further funds from the African Development Bank.
The Federal Government will also present its economic proposal to the African Development Bank to help release a second loan tranche worth $400m to support the budget, officials have said.
According to news reports, the funds the government is trying to raise through loans are basically to fund the $23.17 billion 2017 budget proposal which apparently is the country’s highest budget proposal in history.