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Stats: 2,353,274 members, 5,219,542 topics. Date: Monday, 21 October 2019 at 05:39 AM
|FG Seeks Fresh $2.5bn World Bank Loan by zakim(m): 7:50am On Sep 20|
The Federal Government and World Bank are in talks for as much as $2.5 billion in a new tranche of concessionary lending to Nigeria, the bank’s Vice President for Africa Hafez Ghanem has said. In the past year Nigeria received $2.4 billion from the World Bank, Ghanem said in an interview with Bloomberg in Abuja on Wednesday.
“We’re talking about a new set of programs of about the same amount, it should be around $2.5 billion,” he said. Faced with revenue shortfalls as the output and price of oil fell in the past five years, President Muhammadu Buhari’s administration has increased borrowing to finance government spending, with domestic debt at $55.6 billion and foreign loans at $25.6 billion.
The Minister of Finance, Budget, and National Planning, Mrs. Zainab Shamsuna Ahmed while giving details of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper said borrowing would be a key component in funding the budget as government cannot drive the required resources to fund the budget without borrowing.
She said the new borrowings are put at N1.605trn for 2019, projected N1.7trn for 2020, N1.6trn for 2021 and N1.3trn for 2020. The borrowings will be 50 percent local and 50 percent foreign she said. Out of the N1.7 trillion to be borrowed in 2020, of this amount, N850 billion will be domestic borrowing while the balance of N850 billion will be from foreign borrowing.
The total fiscal deficits for 2019 is N2.474trn, in 2020 it will reduce to N2.154trn. The deficit to GDP is 1.77 percent in 2019. “Debt service is also increasing. And this is so because we have increased our borrowings in recent years. Our debt servicing has increased from N2.144trn in 2019 to N2.45 in the year 2020,” the minister had stated. To ease the mounting debt burden, Nigeria has sought more credit with low interest and long repayment periods from institutions including the World Bank and the African Development Bank.
“The current economic performance of Nigeria is not enough to reduce poverty,” said Ghanem. “We need to accelerate growth.” The World Bank’s focus in Nigeria is to lift about 100 million Nigerians, half of the population, out of poverty, with special emphasis on women’s education, expanding digital opportunities and solving a power crisis that hobbles economic activities.
“It’s important to resolve the problems of the power sector in Nigeria to bring in more investments”, because you need to bring down the cost of power to make the economy more competitive for the development of industries,” he added. The World Bank is supporting digital transformation in Nigeria because of its potential ability to transform other areas of the economy including industry, agriculture and services, according to Ghanem. “Nigeria has a comparative advantage in that area because of the youth, a majority of the population is young,” he said.
“So if we want to create jobs, we need to invest much more in the digital economy.” Speaking with Daily Trust in Abuja, a former Managing Director of a commercial bank said there is nothing wrong in borrowing if it is done to build infrastructure and do other necessary things in the country.
The former MD who didn’t want to be quoted however advised the FG not to squander the money on jamborees or things that would yield no benefits to Nigerians.
Read more: https://www.dailytrust.com.ng/fg-seeks-fresh-2-5bn-world-bank-loan.html
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Nukilia: 7:54am On Sep 20|
Scamming Nigerians is the governments business
94 Likes 5 Shares
|Re: FG Seeks Fresh $2.5bn World Bank Loan by phemy36(m): 7:57am On Sep 20|
God please save us in this country. They want to finish us in this country
71 Likes 1 Share
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Nobody: 7:57am On Sep 20|
world bank would be the most foolish INT. Organisation. P&ID is trying to get the much they can before this country finally shut'sdown
62 Likes 1 Share
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Gracealone(m): 8:16am On Sep 20|
Any politician nursing Aso Rock 2023 ambition had better begin to take note now.
25 Likes 1 Share
|Re: FG Seeks Fresh $2.5bn World Bank Loan by eTECTIV: 8:24am On Sep 20|
One of these days one of these organizations or countries dat we are owing will jus come and annex us or colonize us all over again
|Re: FG Seeks Fresh $2.5bn World Bank Loan by baby124: 8:35am On Sep 20|
The government needs to start detailing what exactly they are using these loans upon loans they keep collecting. There is no impact of these loans on the country. Stop mortgaging the future of Nigeria because you want to live a frivolous and vain life. Finance minister must explain in detail what this 2.5bn loan is for and why? Let the public scrutinize the details.
If it’s a loan to pay their bloated salaries and allowances then it’s time we think about disbanding the Federal House of Representatives and keep only the senate or vice versa.
83 Likes 7 Shares
|Re: FG Seeks Fresh $2.5bn World Bank Loan by NaijaRoyalty: 8:40am On Sep 20|
Government of borrow borrow
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Seetto: 9:14am On Sep 20|
He is talking about youth, youth wey don found alternative in yahoo yahoo, and the lazy ones spent their precious time resulting to ethnic/ religion bashing on social media..
|Re: FG Seeks Fresh $2.5bn World Bank Loan by FarahAideed: 9:36am On Sep 20|
No govt in Nigerian history has borrowed more than this useless govt yet the very painful part they have absolutely nothing to show for it
|Re: FG Seeks Fresh $2.5bn World Bank Loan by heardsmankids: 9:40am On Sep 20|
such amount of money
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Citytrend: 9:40am On Sep 20|
I hope that will soften the financial stress in this country
Anyway, l will Build a Professional Logo for your Product or Company For 2k Only. Offer valid today only. See my info below to Chat me up on WhatsApp
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Marineghost: 9:41am On Sep 20|
America sef dey borrow money
Buhari is working✓
|Re: FG Seeks Fresh $2.5bn World Bank Loan by passyhansome(m): 9:41am On Sep 20|
Nigeria servicing debt with more than 50% revenue. Nigeria is sitting on a gun powder very soon it will explode
BUHARI HAS KILLED THIS COUNTRY
27 Likes 1 Share
|Re: FG Seeks Fresh $2.5bn World Bank Loan by jakezebrax: 9:41am On Sep 20|
This is what happens when you have Afonja technocrats in government....borrow, borrow and borrow like Lagos and most SW states!
|Re: FG Seeks Fresh $2.5bn World Bank Loan by PoliticalWitch(m): 9:42am On Sep 20|
Okay...if we want to stop all this loan business , two things have to happen
1.Oil goes above $140 per barrel and stays there for the next five years (now looking likely since Trump and Khamenei are about to fight it out).
2.We stop wasting N2 trillion on fuel subsidy, or underrecovery, or whatever...direct the money to railways, power and education, watch as investment flows into the country to build refineries, etc...,make NNPC private...and at the end of the day, our economy will flourish and we would become the one giving out loans.
Nigeria's problem is simple. We rely on oil too much. And this oil is not enough for us. Time we faced that fact, ended subsides, and used the money where it is needed...so that investment will build the stuff we need...and we can fund the educaiton and railways sector which would help the poor much better than some yeye subsidy payments to some cabal.
But apc ain't listening to good economic advice.
We are going to keep on taking loans because oil is not high enough in price to meet our needs...and because we are subsidising fuel for no good reason. 2 trillion naira annually would make a difference in educaiton, and railways, and even power.
To repeat...Nigeria needs oil above $140 per barrel to stop taking loans. Current oil prices is around $60-80. So, in practical terms we have to start saving money...and this means an end to fuel subsides.
14 Likes 1 Share
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Liturgy(m): 9:42am On Sep 20|
hmmm, this is Nigeria!
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Earthquake1: 9:44am On Sep 20|
Na our children go suffer the effects of this borrowings
We need to start asking questions now!!!
6 Likes 1 Share
|Re: FG Seeks Fresh $2.5bn World Bank Loan by livebyday(m): 9:44am On Sep 20|
A welcome.development if used properly and not looted
But alas we know the reality
Nigeria needs a new crop of forward thinking tech savvy politicians who embody integrity
1 Like 1 Share
|Re: FG Seeks Fresh $2.5bn World Bank Loan by scaramucci: 9:44am On Sep 20|
Nothing good will come out of this Buhari's regime. Good can only come from good.
|Re: FG Seeks Fresh $2.5bn World Bank Loan by hisexcellency34: 9:44am On Sep 20|
Loans everyday. Who will pay?
|Re: FG Seeks Fresh $2.5bn World Bank Loan by sentorial: 9:44am On Sep 20|
wonderful, trying to borrow money when the issue of P&ID isn't settled.
|Re: FG Seeks Fresh $2.5bn World Bank Loan by StrikeBack(m): 9:44am On Sep 20|
Please I'm available as collateral
|Re: FG Seeks Fresh $2.5bn World Bank Loan by anonimi: 9:45am On Sep 20|
What do you expect when Nigerians opened their eyes to vote an incompetent dullar'd who confessed that he does not know how to make money?
Are we supposed to be surprised
|Re: FG Seeks Fresh $2.5bn World Bank Loan by obainojazz(m): 9:45am On Sep 20|
They budgeted 100billion naira for the ruga stuff that doesn't make a sense.. Now borrowing to run the country.. Yeye dey smell
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Seetto: 9:45am On Sep 20|
It is better they should auction this country..
I doubt if we can get it right with the present structure...
|Re: FG Seeks Fresh $2.5bn World Bank Loan by hargbolahan01: 9:45am On Sep 20|
it would have been better if we see the function of the money around us but we just hear huge amount with no positive impact
I pity us youth...as we will be looking how to develop the economy in the future and we will also be paying debt..
so we need to work harder because the old thief is leaving nothing behind than debt
|Re: FG Seeks Fresh $2.5bn World Bank Loan by taretoofine: 9:45am On Sep 20|
All abacha loot where is it
All Effc recovered funds where is it
All excess tax on citizens where is it
They waste same billions of dollars seeking for oil in the north
They want to leave the future of our children with debts
|Re: FG Seeks Fresh $2.5bn World Bank Loan by tot(f): 9:45am On Sep 20|
Na wa. I would like to know the TOTAL amount this government has borrowed so far, and secondly what is the payment plan? We cannot continue to put future generations into debt. Loans are not free money, they have to be paid back plus interest.
It's another topic entirely addressing what the borrowed monies have been used for, considering the current situation of the country. I really feel sad for this country.
|Re: FG Seeks Fresh $2.5bn World Bank Loan by ArcSEMPECJ(m): 9:47am On Sep 20|
Next level ......next level.....
Where are the E -zombies....hope you have paid your charges to deposit money that you don't have in order to give senators #5.5 billion naira for SUV cars.....
Lols...Buhari is a goal....keep peppering Nigeria...
|Re: FG Seeks Fresh $2.5bn World Bank Loan by Kolisky(m): 9:47am On Sep 20|
....and what's vexing me is that, we can't see the effects of this Loan
......Later on, they will be using individual to borrow money self....
I pity my generation and over-pity the coming generation
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