Nigeria is on track to secure a $2.25 billion loan from the World Bank, with final approval expected in June 2024, according to the Ministry of Finance.
The loan, divided into a $1.5 billion Development Policy Financing and $750 million Programme-for-Results Financing, is poised to bolster Nigeria’s economic development initiatives.
Wale Edun, the Minister of Finance and Coordinating Minister for the Economy, hailed the loan as a significant achievement for Nigeria during the 2024 spring meetings of the World Bank and International Monetary Fund (IMF) held in Washington.
Edun revealed that while the Board of Directors of the World Bank is set to convene in June to finalize the approval, the credit has already received initial approval and is currently undergoing processing.
The terms of the loan are favorable for Nigeria, with a 40-year term and a 10-year moratorium period at a nominal 1 percent interest rate. Edun described the loan as akin to a grant, highlighting its long-term benefits and minimal financial burden on the country.
He emphasized the importance of the loan in supporting Nigeria’s economic resilience amidst global challenges, showcasing the nation’s strategic response to economic uncertainties.
The loan is expected to contribute significantly to Nigeria’s economic growth and development agenda, providing vital financial support for key projects and initiatives aimed at driving sustainable development across various sectors.
Nigeria’s proactive approach to securing international financing reflects its commitment to addressing economic challenges and fostering long-term prosperity for its citizens.
