2015 Budget: Nigeria Approaches AfDB, World Bank for $2bn Loan

Following a dwindling revenue and unfavourable economic conditions, Nigeria has approached the World Bank and the African Development Bank for a $2bn loan to finance its 2015 fiscal year budget.

According to Minister of Finance, Dr. Ngozi Okonjo-Iweala said yesterday Nigeria has now advanced negotiations with both banks for the loan which will enable it implement its N4. 4 trillion 2015 budget.
The loans are soft, coming at reasonable conditions of 3 to 4 percent interest rate, five years moratorium and over 25 years repayment period.

The terms have not been agreed completely but “these are the standard terms for us at this time,” she said in Abuja.

The loan will be disbursed in two tranches and according to her, is already captured in the government’s present borrowing plan.

The loan will come in foreign exchange through the Central Bank of Nigeria and is expected to bring in some needed foreign exchange that can be available also for the private sector, especially manufacturers.