• Friday, July 19, 2024
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BusinessDay

Contrary to FG’s claim, World Bank’s $800m for subsidy palliatives is another loan

Contrary to FG’s claim, World Bank’s $800m for subsidy palliatives is a loan

The proposed $800 million grant from the World Bank for subsidy palliatives is a loan contrary to claims by the Nigerian government, BusinessDay’s finding has shown.

On Wednesday, Nigeria’s finance minister, Zainab Ahmed announced that Nigeria secured an $800 million grant from the World Bank for cash handouts to the poor as part of efforts to end a costly fuel subsidy by June.

Read also: FG secures $800m World Bank grant for subsidy palliatives

“The first tranche of funding from the Washington-based lender “will enable us to give cash transfers to the most vulnerable in our society that have now been registered in a national social register,” Ahmed said on Wednesday.

Details of the agreement seen by BusinessDay showed agreement between the federal government and the World Bank has a repayment plan which will be made from 2027 to 2051, twice a year.

“Let’s stop the misinformation that this is a grant. It’s a loan,” Olúṣeun Onígbindé, the co-founder and CEO of BudgIT, a Nigerian civic startup said.