https://en.sputniknews.africa/20231016/nigerias-cabinet-approves-new-15-billion-loan-from-world-bank-finance-minister-says-1062853019.html
Nigeria's Cabinet Approves New $1.5 Billion Loan From World Bank, Finance Minister Says
Nigeria's Cabinet Approves New $1.5 Billion Loan From World Bank, Finance Minister Says
Sputnik Africa
Earlier this month, the Nigerian government said it had "concluded plans" to obtain financial support from the World Bank to help fund its budget, including... 16.10.2023, Sputnik Africa
2023-10-16T18:57+0200
2023-10-16T18:57+0200
2023-10-16T18:57+0200
sub-saharan africa
west africa
nigeria
world bank
economy
finance
debt
international monetary fund (imf)
bola tinubu
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Nigeria's cabinet has agreed to borrow $1.5 billion from the World Bank, the country's Finance Minister Wale Edun told journalists following the Federal Executive Council meeting in the capital, Abuja, on Monday.The minister elaborated that the World Bank had agreed to provide concessionary financing to support the nation's budget amidst financial shortages and upcoming policy reforms.Last week, the international financial institution announced its ongoing discussions with the Nigerian government regarding the provision of $1.5 billion in financing. The funding is expected to be granted under the Development Policy Financing (DPF) program, which provides direct budget financing and supports national reforms aimed at boosting economies and specific sectors, according to the World Bank.The West African country is seeking funding to expedite economic growth and support over 40% of its 200 million citizens living in poverty through economic reforms. Another international lender, the IMF, welcomed Nigeria's proposed economic changes, including the unification of various exchange rates. The organization confirmed its readiness to lend a hand to the Nigerian government if deemed necessary.Over the past eight years, the national debt has increased almost eightfold to over $110 billion, while servicing those obligations consumed more than 90% of the government's revenue in 2022.The World Bank is Nigeria's largest multilateral creditor, with the country owing approximately $14.51 billion as of June 2023. According to local media reports, in the first four months of President Bola Tinubu's administration, Nigeria has secured $1.95 billion in loans from the lender.The first loan worth $750 million was approved in June to support Nigeria's power sector. A $500 million loan was also agreed upon the same month to aid the country's women's empowerment efforts. The third one of $700 million was approved in September to enhance the education and empowerment of teenage girls.Over the years, Nigeria's insufficient revenue generation has compelled the government to borrow more funds. The government in its 2023 budget promised to boost revenue collection partly by increasing oil production and thus reduce debt payments to 60% of revenues.Local media reported that despite the increasing debt, the Nigerian government maintains its commitment to adhering to the borrowing plan for 2023. Earlier, President Tinubu reaffirmed his administration's determination to put an end to the practice of overreliance on borrowing for public expenses, which results in an arduous debt service burden on the limited government revenue. He emphasized that the country can no longer continue to make its debt repayments with 90% of its revenue, adding that this could lead to detrimental consequences for the nation.
https://en.sputniknews.africa/20230910/nigeria-seeks-to-assert-its-place-in-global-stage-by-joining-g20-1062013583.html
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west africa, nigeria, world bank, economy, finance, debt, international monetary fund (imf), bola tinubu
west africa, nigeria, world bank, economy, finance, debt, international monetary fund (imf), bola tinubu
Nigeria's Cabinet Approves New $1.5 Billion Loan From World Bank, Finance Minister Says
Earlier this month, the Nigerian government said it had "concluded plans" to obtain financial support from the World Bank to help fund its budget, including low-interest financing from the International Development Association (IDA), the bank's branch assisting impoverished nations around the world.
Nigeria's cabinet has agreed to borrow $1.5 billion from the World Bank, the country's Finance Minister Wale Edun told journalists following the Federal Executive Council meeting in the capital, Abuja, on Monday.
The minister elaborated that the World Bank had agreed to provide concessionary financing to support the nation's budget amidst financial shortages and upcoming policy reforms.
Last week, the international financial institution announced its ongoing discussions with the Nigerian government regarding the provision of $1.5 billion in financing. The funding is expected to be granted under the Development Policy Financing (DPF) program, which provides direct budget financing and supports national reforms aimed at boosting economies and specific sectors, according to the World Bank.
The West African country is seeking funding to expedite economic growth and support over 40% of its 200 million citizens living in poverty through economic reforms.
Another international lender, the IMF,
welcomed Nigeria's proposed economic changes, including the unification of various exchange rates. The organization confirmed its readiness to lend a hand to the Nigerian government if deemed necessary.
"As every member country of the IMF, Nigeria can seek IMF financing if they see this as helpful to address external imbalances," the fund is quoted as saying by Nigerian media, adding: "The Nigerian authorities have not approached the IMF with a request for financing."
Over the past eight years, the national debt has
increased almost eightfold to over $110 billion, while servicing those obligations consumed more than 90% of the government's revenue in 2022.
The World Bank is Nigeria's largest multilateral creditor, with the country owing approximately $14.51 billion as of June 2023. According to local media reports, in the first four months of President Bola Tinubu's administration, Nigeria has secured $1.95 billion in loans from the lender.
The first loan worth $750 million was approved in June to support Nigeria's
power sector. A $500 million loan was also agreed upon the same month to aid the country's women's empowerment efforts. The third one of $700 million was approved in September to enhance the education and empowerment of teenage girls.
Over the years, Nigeria's insufficient revenue generation has compelled the government to borrow more funds. The government in its 2023 budget promised to boost revenue collection partly by increasing oil production and thus reduce debt payments to 60% of revenues.
Local media reported that despite the increasing debt, the Nigerian government maintains its commitment to adhering to the borrowing plan for 2023.
Earlier, President Tinubu reaffirmed his administration's determination to put an end to the practice of overreliance on borrowing for public expenses, which results in an arduous debt service burden on the limited government revenue. He emphasized that the country can no longer continue to make its debt repayments with 90% of its revenue, adding that this could lead to detrimental consequences for the nation.
