Under President Bola Ahmed Tinubu’s leadership, the Federal Government is preparing to secure an additional N1.16 trillion ($1.5 billion) loan from the World Bank. The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, confirmed this loan, stating that it has been in the pipeline for some time and will soon be released.
Edun explained that in light of the prevailing high global interest rates, the Federal Government is committed to seeking financing on reasonable terms. He emphasized that the World Bank provides vital support to developing countries through various funding windows, including the International Development Association (IDA) for poorer countries. With Nigeria now qualifying for normal World Bank funding, the interest rate will be close to zero, making this a cost-effective option for development financing.
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This development comes as Nigeria’s 2022 audited financial statement revealed that the country ranks fourth among borrowers from the World Bank’s International Development Association (IDA) with a debt of $14.3 billion. Bangladesh claimed the top spot as the leading IDA debtor with $19.3 billion, surpassing India, which moved to the second position with $17.9 billion in debt, while Pakistan maintained the third position with $16.9 billion in debt.
Nigeria holds the distinction of having the highest IDA debt in Africa, and the top three borrowers (Bangladesh, India, and Pakistan) are from Asia. The World Bank’s 2023 Annual Report also indicated that Nigeria was among the top 10 countries receiving fresh IDA loans in the same year, with the bank committing $1.55 billion to Nigeria, ranking the country as the ninth-highest beneficiary.
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