• Govt has not submitted reform plans to World Bank - Sources

• Lender has not been able to consider a loan yet - Sources

• AfDB holds back second tranche of $1 bln loan - bank chief

• Nigeria seeks to drag itself out of first recession in 25 yrs

Nigeria's efforts to secure funds from international lenders to help haul it out of recession have stalled because it has not submitted the required economic reform plans, according to one of the banks and sources close to the matter.

The government has been in loan talks with the World Bank for a year. It had told the lender it would present its proposed reforms to make the economy more resilient and attractive to investment by the end of December, according to Western diplomats and a Nigerian official who declined to be named as they are not authorised to speak publicly.

But this has not happened and as a result of the delay, which the government has not explained, the Washington-based bank has not been able to consider a loan yet, the sources said.

Nigerian finance minister Kemi Adeosun and the World Bank declined to comment.

The African Development Bank (AfDB), meanwhile, is holding back the second tranche of a $1 billion loan for Nigeria, AfDB president Akinwumi Adesina told Reuters on the sidelines of the World Economic Forum in Davos, Switzerland.

"We are waiting for the economic policy recovery programme and the policy framework for that," said Adesina, without specifying when the AfDB had expected to receive the reform plans.

Nigeria has said it is seeking to borrow $4 billion in total from the World Bank and other foreign institutions and $1 billion through Eurobonds to plug a yawning budget deficit and fund badly needed infrastructure projects.

The country, which relies on oil revenue for most of its income, has been hit hard by the sharp fall in crude prices since 2014 and is struggling to drag itself out of its first recession in 25 years.

It is unclear why the government has not submitted reform plans to the international lenders. The funding deadlock could throw into doubt badly needed infrastructure projects planned for this year, including new roads and improvements to power infrastructure.

The failure to secure the funds, and to present a reform programme, could also deter some investors from Nigeria's planned $1 billion Eurobonds sale in March.

A Nigerian financial source said the government was working with a consultancy on putting together a package of proposed reforms. The source, who declined to be named as the matter is confidential, did not elaborate.

RECORD BUDGET

Nigeria needs money to help plug a budget deficit of 2.2 trillion naira ($7 billion) for 2016 and to help fund a record budget of 7.3 trillion naira for 2017 which is aimed at stimulating the economy.

It has been holding talks with various institutions and China over the last year to borrow funds but apart from a $1 billion loan from the African Development Bank, at a rate of 1.2 percent, nothing has been made public.

The Abidjan-based AfDB has paid out an initial $600 million in November but is awaiting the economic reform proposals before it disburses the rest of the money.

It is unclear how much money Nigeria is seeking from the World Bank, or whether the lender was pushing for any specific economic reforms from the government.

The diplomatic sources, however, said the bank wanted to see how Nigeria planned to lower its dependence on oil revenues and boost investment, which has been hit by a high official exchange rate for the naira currency.

Nigeria's central bank, backed by President Muhammadu Buhari, has kept the naira rate to the dollar at 40 percent above the unofficial - or parallel - market rate, which has dried up dollar supplies on official channels.

The policy has also made investors reluctant to commit new projects as they expect the central bank will have to devalue the naira eventually as oil production has been hit by an insurgency in the Niger Delta oil hub.

The central bank has also imposed hard currency curbs making impossible the import of almost 700 goods, which has forced dozens of plants to close running out of spare parts.

Adesina told Reuters on Tuesday that the currency rate problem needed to be addressed by the government in its reform programme, which he said the AfDB was coordinating with the World Bank.

"We are being clear that the quantitative restriction in terms of access to FX is what's creating huge gap between parallel market rates and official rates," he added. ($1 = 314.5000 naira). (REUTERS)

http://www.dailytrust.com.ng/news/business/nigeria-s-efforts-to-secure-international-loans-hit-deadlock-sources/181250.html

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Hmmm... this is getting serious. Recession is really biting hard on genuine businesses and government must spend and inject more money into the comatose economy yet this loan is facing setbacks. This is really becoming scary for entrepreneurs.

Nigeria don tire me walahi

Buhari is cursed

Make 2019 come fast abeg.

Lies Incorporated.

Otherwise, I am sure there is something else the international financial Community wants us to do that is so terrible that they are not telling us.
What rubbish is there about " economic plans" . Ordinary Benin Republic gets loans from the same sort of documents that Nigeria must have presented.
Nigeria is not going to devalue fiurther or hurt herself because of a few billions.

HVACSpecialist:
Hmmm... this is getting serious. Recession is really biting hard on genuine businesses and government must spend and inject more money into the comatose economy yet this loan is facing setbacks. This is really becoming scary for entrepreneurs.

Why must it be govt who injects money into the system. People are naturally suppose to. Our sharing system is a major contributor to this recession.

Adminisher:
Lies Incorporated.

Otherwise, I am sure there is something else the international financial Community wants us to do that is so terrible that they are not telling us.
What rubbish is there about " economic plans" . Ordinary Benin Republic gets loans from the same sort of documents that Nigeria must have presented.
Nigeria is not going to devalue fiurther or hurt herself because of a few billions.

Go and get the money without reform plans na.
You think you are dealing with idiotsss that will give you loans without knowing what you plan to do with it or how you will pay back.

Are the economist dead in Nigeria or politicians not care what they have to say on public policy. This is getting spooky when it's clear they have no idea how to reform economy. I hope Buhari's body language talk isn't euphemism for empty suit.

reform plans to the international lenders. The funding deadlock could throw into doubt badly needed infrastructure projects planned for this year, including new roads and improvements to power infrastructure.

The failure to secure the funds, and to present a reform programme, could also deter some investors from Nigeria's planned $1 billion Eurobonds sale in March.

watching.....

its not just about economic reform plans...

its also about sociopolitical stability & administrative acumen.

no one call tell which direction this regime is headed & while the supposed Chinese investment of $40b looks mouthwatering on the surface, what lurks beneath the surface of that gesture should be a source for concern.

ZUBY77:


Go and get the money without reform plans na.
You think you are dealing with idiotsss that will give you loans without knowing what you plan to do with it or how you will pay back.

Awww stop nonsense. What reform plans again?
Nigeria has removed fuel subsidy, Nigeria has devalued it's currency, Nigeria has instituted TSA.
There is a medium term expenditure forecast, there are priority projects .
The economy is being restructured away from oil. There is an agro allied sector growth plan in place.
These things will stimulate the economy and generate tax revenues for Government to pay any loans.

Please beware of danger lurking behind fancy words. International bankers want the Government to devalue the currency more. In any case all Nigerian Treasury Bills and bond instruments are over subscribed. Nigeria will have money to finance it's deficit. Almost all big projects have their counterpart fundings paid up.

This is the best Testimony Nigerians have had in a long time.

GOOD NEWS

Govt of inconclusiveness, soon we'd hear, Inconclusive loan

Pls check out my signature for quality and durable furniture

we do not need the loans... we can be self-sufficient.. only with time

peter0071:
we do not need the loans... we can be self-sufficient.. only with time

Lol. You have no clue whatsoever.

nigeria is now officially a 4th world country.

so with all your clues.. u think borrowing is your target?? no wonder... clueful one! clap for yourself

1Rebel:


Lol. You have no clue whatsoever.

May God help this country and speedily so in Jesus name.

Daily trust, daily times. Nobody takes news from those ones serious.

i do beleive that Nigeria can come out of this recession... imagine the rice being produced in the country right now... do u know that we export the rice if we keep producing much more of such? we can start exporting to countries around like Togo, Benin Republic, Cameroon, etc.

1Rebel:
nigeria is now officially a 4th world country.

Wow!

Short of words on this issue. PMB is just unnecessarily making Nigerians suffer. This recession should have been prevented in the first place...

Honestly, though I voted for him, I have realized that he's only good as EFCC chairman or Defense minister

my brother, Let's be honest. what do you think should/could be done to bring Nigeria out of this recession?

Coolcash1:
Short of words on this issue. PMB is just unnecessarily making Nigerians suffer. This recession should have been prevented in the first place...

Honestly, though I voted for him, I have realized that he's only good as EFCC chairman or Defense minister

This country is toast!

Nigeria

peter0071:
my brother, Let's be honest. what do you think should/could be done to bring Nigeria out of this recession?

Anything do-able,

duni04:
Daily trust, daily times. Nobody takes news from those ones serious.

Ostrich