The board of the World Bank Group will be considering Nigeria’s loan request of $3bn on August 6 this year.
The country is seeking the sum of $3bn from the World Bank to cushion the negative impact of a crash in oil prices on revenue inflow .
Out of the $3bn, about $1.5bn will go to the Federal Government while the balance will be provided as loans to the state governments.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, confimed the development in a Citi Bank Investor update with the Federal Government, organised by Citi Bank.
She said Nigeria was almost securing the $3bn World Bank facility as all the conditions needed to secure the facility had been met.
Ahmed said, “World Bank negotiations is on course and we are looking at World Bank going to the board on 6th of August for Nigeria’s approval.
“The amount we are raising in the first instance is $1.5bn for FG and around September, October, we are hoping to close out on the facility meant for states and the amount is meant to be $1bn to $1.5bn.”
The Federal Government had in recent times resorted to massive borrowings in funding critical projects as a way to cushion the impact of a decline in revenue on the economy.
While the government had argued that borrowing was inevitable, especially at a period like this, there had been serious concerns about the rate the debts are being accumulated in quick succession.
Apart from claims that some of the loans are not being deployed into projects that could generate income to pay back, experts have said that borrowing should not be done in such a way to mortgage the future of the country and its sovereignty.
Based on documents obtained from the Budget Office of the Federation, the Federal Government is to raise the sum of N4.17tn through local and international sources this year.
As of the end of December last year, Nigeria’s total debt stock stood at about N27.7tn.
This is made up of domestic debt of N18.38tn, representing 67.03 per cent of the total debt portfolio, while external debt obligations stood at N9.02tn or 32.93 per cent.
When the N4.17tn is added to the outstanding debt obligation of N27.7tn, the country’s debt profile is expected to hit N31.87tn.
