Nigeria green-lighted for $2.25bn World Bank loan at 1% interest rate

According to the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, the federal government has secured a $2.25 billion single-interest loan from the World Bank. He said the bank’s board of directors had approved the credit, currently under processing. According to him, the facility offers a 40-year term with 10 10-year moratorium at 1 per cent interest rate. Edun disclosed this while briefing journalists at the just-concluded Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington D.C said the loan was virtually a grant, and a “free lunch”, noting that it was the “closest you can get to free money”. The minister also disclosed that the country was set to benefit from budgetary support and low-interest funding from the African Development Bank (AfDB). He also said that to boost capital inflows into the country, the current administration was looking to double the current diaspora remittances and expects a substantial and successful diaspora bond issue later in the year. He said, “In terms of remittances, it is one of how we can boost foreign exchange supply and funding for investment in the country. There are Nigerians abroad, they are doing very well. They have significant funding. There are even Nigerians in Nigeria with funds abroad. That too would be counted as a remittance. And to help the issue of supply of foreign exchange to the Nigerian economy, the government is looking at attracting those funds and capturing those funds through a diaspora type of instrument, a diaspora bond.” Edun pointed out that having achieved some level of success in stabilising the economy, the Federal Government remained focused on attracting funds to support growth.