The Nigerian finance ministry has announced that the World Bank will assess and potentially approve Nigeria’s $2.25 billion loan request in June 2024. This loan, comprising $1.5 billion in Development Policy Financing and an additional $750 million in Programme-for-Results Financing, marks a significant financial move for the country.
According to a statement by Mohammed Manga, Director of Information and Public Relations at the finance ministry, the loan approval process will be finalized in June 2024. Wale Edun, Minister of Finance and Coordinating Minister for the Economy, described the loan as a “free lunch” and highlighted it as one of Nigeria’s major achievements from the recently concluded 2024 spring meetings of the World Bank and International Monetary Fund (IMF).
While Edun initially anticipated the World Bank Board’s meeting in June for final approval, he disclosed during a press conference at the spring meetings that the board had already approved the credit, currently undergoing processing.
The loan offers favorable terms, including a 40-year term with a 10-year moratorium and a 1% interest rate, making it highly advantageous for Nigeria. Edun emphasized that the terms make the loan “virtually a grant,” providing significant financial support to the country.
During the spring meetings, Edun led the Nigerian delegation in showcasing the nation’s economic resilience and strategic responses to global challenges. Nigeria’s proactive engagement in seeking financial support reflects its commitment to economic growth and development amidst evolving global dynamics.
As Nigeria awaits the final approval of the $2.25 billion loan from the World Bank, the country anticipates leveraging this financial assistance to address key developmental challenges and drive sustainable growth. The loan’s favorable terms position Nigeria to make significant strides in its economic trajectory, demonstrating its commitment to navigating global uncertainties with resilience and foresight.
Credit: Businessnews ng (Text Excluding Headline)
