W’Bank prequalifies Nigeria for ‘friendly’ $2.25b loan

The World Bank Group has prequalified Nigeria for a $2.25 billion loan at a one per cent rate, a 40-year term with a 10-year moratorium.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed at the close of the spring meetings of the International Monetary Fund (IMF) and World Bank, in Washington DC, United States.

Describing the facility as a grant owing to its low interest rate and moratorium, said it had been approved by the Board of Directors of the global lender.

He said: “If you look at the fact that we have qualified for the processing, just this week to the Board of Directors of the World Bank, of the total package of $2.25 billion of what you can call, I mean, if there is no such thing as a free lunch, but it is the closest you can get to free money. It is virtually a grant. It is for about 40 years, 10 years moratorium and about one per cent interest. So that also is part of the flow you can count.”

The minister noted that Nigeria is set to benefit from budgetary support and low-interest funding from the African Development Bank.

He added that negotiations with foreign direct investors are underway.

Edun is optimistic that cash inflow into the economy would limit the possible negative impact of loans on the well-being of Nigerians.

He observed that meeting the two million barrels per day target by President Bola Tinubu would boost revenue from oil exports.

Edun stated: “These measures are crucial for enhancing our fiscal resilience and ensuring long-term economic stability.”