The Federal Government is about to receive a loan of about $2.2 billion with a low interest rate from the World Bank, and also receive financial support from the African Development Bank.
Wale Edun, the Minister of Finance, revealed this news at a press briefing after Nigeria's participation in the World Bank/IMF Spring meeting in Washington DC.
Edun mentioned diaspora remittances, foreign investments, and support from the World Bank and other global partners as sources of international funding for the Nigerian economy.
He said, "We have been approved for a total package of $2.25 billion from the World Bank, which is like getting a nearly free grant. It includes a moratorium of 10-20 years and an interest rate of about 1%."
Additionally, the African Development Bank will provide similar low-interest budgetary support, and discussions with foreign investors in various sectors are ongoing.
Edun also mentioned the issuance of dollar-denominated securities targeted at Nigerians in the diaspora and those with foreign-currency savings in Nigeria as a way to attract foreign exchange into the country.
He also emphasized the fiscal side's contributions to complement recent changes in monetary policy by the Central Bank of Nigeria.
According to the minister, the issuance of government securities at an interest rate closer to the CBN’s policy rate indicates collaboration between both sides of the economy to address inflation and attract foreign exchange.
