Nigeria’s $2.25bn World Bank loan expected June

The World Bank will, in June 2024, consider and give final approval to Nigeria’s $2.25 billion loan request, the finance ministry said Monday.

The loan comprises a $1.5 billion loan in Development Policy Financing and another $750 million in Programme-for-Results Financing.

The ministry gave the details in a statement signed by Mohammed Manga, the director of information and public relations.

Wale Edun, Minister of finance and coordinating minister for the economy, announced at the weekend in Washington that the facility which he called a “free lunch” was one of Nigeria’s major takeaways from the just concluded 2024 spring meetings of the World Bank and International Monetary Fund (IMF).

“We expect that the Board of the World Bank will meet in June 2024 to consider the final approval of this financing package,” the finance minister said.

But breaking the news during a press conference on the sidelines of the spring meetings, the minister said that the World Bank board of directors had already approved the credit, which was currently being processed.

The facility offers a 40-year-term with 10 years moratorium at 1 percent interest rate, he stated, while describing it as ‘virtually a grant’

“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 1% interest. So that also is part of the flow you can count,” Edun said.

During the Spring Meetings, Edun who led the Nigerian delegation showcased the nation’s economic resilience and strategic response to global challenges.