World Bank Board to Give Final Approval for Nigeria’s $2.25bn Financing Request in June

Ndubuisi Francis in Abuja

The Board of the World Bank would meet in June to consider the final approval of Nigeria’s request for a $2.25 billion single-digit interest financing package, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun has disclosed.

Edun, announced the financing request at the end of the just-concluded Spring Meetings of the International Monetary Fund (IMF) and World Bank on Sunday.

He had stated that  the package, approved by the Board of Directors of the World Bank, offers a 40-year term with a 10-year moratorium and a nominal one per cent interest rate.

However, in a statement issued yesterday, by the finance ministry, to shed more light on the matter, stated that Nigeria expects that the Board of the World Bank would meet in June 2024 to consider the final approval of the financing package.

“The Federal Ministry of Finance continues to work closely with the World Bank on Nigeria’s application for up to $2.25 billion, comprising $1.5 billion in Development Policy Financing and $750 million in Programme-for-Results Financing.

“We expect that the Board of the World Bank will meet in June 2024 to consider the final approval of this financing package,” the statement added.

 The statement noted during the recent World Bank and IMF Spring Meetings, Nigeria, under President Bola Ahmed Tinubu’s leadership, and represented by Edun, showcased the nation’s economic resilience and strategic response to global challenges.

“The 2024 Spring Meetings highlighted the global economy’s improved resilience, acknowledged by economic leaders worldwide.

“Despite a global economic environment challenged by high inflation rates and ongoing geopolitical tensions, Nigeria has emerged as a regional leader in promoting sustainable economic practices.

“The Bank and the Fund have commended Nigeria’s efforts in tightening monetary policies, revising the country’s growth forecast upwards to 3.4 per cent for this year – a reflection of the effectiveness of the administration’s economic policies,” it added.

According to the statement, Edun, who also serves as the Chair of the African Caucus, emphasised Nigeria’s pivotal role in ratifying the third chair for Sub-Saharan Africa at the IMF, a significant step in bolstering Africa’s voice on global economic issues.

Noting that the government’s commitment to economic stability remains unwavering, Edun was said to have highlighted several key initiatives aimed at bolstering Nigeria’s economy, stating:

The minister also stated that significant efforts are being made in the housing sector to support the rapid development of sustainable value chains, expected to have a catalytic effect on the economy and make housing more accessible.

On the National Social Investment Programme (NSIP), the minister noted the recent review and improvement of its financial architecture to enhance targeted delivery and efficiency, with direct transfers having recommenced, providing critical support to vulnerable populations.

He reaffirmed the administration’s commitment to ensuring the Naira’s position as a strong store of value and mentioned ongoing dialogues with the organised private sector to learn how policy can best support their growth and sustainability.

The statement explained that 

on the foreign exchange front, the Central Bank of Nigeria (CBN) has made significant strides in enhancing liquidity and creating a fair, more transparent FX market.

These efforts have been supported by the Ministry of Finance through the strategic issuance of financial instruments through the Debt Management Office (DMO), designed to attract foreign currency inflows, it added.