Emmanuel OchayiNigeria is on the brink of securing a financial boost from the World Bank, as Finance Minister Wale Edun unveiled plans for a $2.2 billion loan with single-digit interest rates during a press briefing in Washington DC.
“The Federal Government has qualified for a total package of $2.25 billion from the World Bank, akin to ‘the closest you can get to a free lunch’,” Edun declared, highlighting the favorable terms of the loan, including a lengthy moratorium period and minimal interest rates.
In addition to the World Bank loan, Nigeria anticipates receiving further support from the African Development Bank (AfDB) in the form of budgetary assistance with low-interest funding.
Edun emphasized the significance of international funding sources, including diaspora remittances, foreign portfolio investments, and collaborations with various development partners.
He outlined the government’s strategy to attract forex inflows, including plans to issue dollar-denominated securities targeted at Nigerians abroad and those with foreign-denominated savings within the country.
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The Finance Minister also underscored the collaborative efforts between fiscal and monetary policies to stimulate economic growth. By aligning government securities’ interest rates with the Central Bank of Nigeria’s monetary policy rate (MPR), Nigeria aims to address inflation and enhance forex inflows.
Highlighting specific sectors for growth, Edun spotlighted agriculture as a key focus area. The government plans to bolster the agricultural sector through initiatives such as distributing fertilizers and seeds to reduce food prices and bolster food security.
Moreover, the Minister outlined ambitious plans for infrastructure development, including increasing power generation to 6000 megawatts within six months and providing low-interest mortgages to facilitate housing accessibility for Nigerians.
He also mentioned the revitalization of the social investment program and proposed economic stabilization measures as part of the government’s broader agenda to stimulate growth and address socio-economic challenges.
Overall, Nigeria’s imminent financial infusion from the World Bank and AfDB, coupled with strategic fiscal measures, reflects the government’s commitment to revitalizing the economy and fostering sustainable development.
