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Yemi Osinbajo
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Nigeria Approaches World Bank For Fresh $2.5BN Loan

Austin Papi

The World Bank has announced that it is currently in talks with Nigeria for a fresh loan of $2.5bn requested by the federal government.

This fresh loan request comes barely a year after Nigeria obtained a $2.4bn loan. The money is said to be allocated for budget fulfilment for all states in the country and other monetary projects.

Hafez Ghanem, the Vice-President for the African division of the World Bank, made this known during an interview with Bloomberg on Wednesday.

He informed the media house that discussions between Nigeria and the financial institution had reached advanced stages for a new loan said to be around $2.5bn

"We're talking about a new set of programs of about the same amount, it should be around $2.5bn," Hafez Ghanem said.

Nigeria is currently facing a revenue shortfall in the economy, as the output and price of petroleum, which is Nigeria’s main source of export, fell in the past five years during President Muhammadu Buhari’s administration.

The nation has also increased her borrowing to finance government's spending. Their domestic debt is said to be at $55.6bn while foreign loans hit $25.6bn. To ease the debt obligation, Nigeria has decided to acquire more credit with long repayment periods and low interest from financial institutions like the World Bank and the African Development Bank.