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FG Seeks Fresh $2.5bn World Bank Loan - Politics - Nairaland

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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

1 Like

Re: FG Seeks Fresh $2.5bn World Bank Loan by Nukilia: 7:54am On Sep 20
Scamming Nigerians is the governments business undecided

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

31 Likes

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

8 Likes

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..

6 Likes

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

59 Likes

Re: FG Seeks Fresh $2.5bn World Bank Loan by heardsmankids: 9:40am On Sep 20
such amount of money

2 Likes

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✓ cheesy grin grin
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!

6 Likes

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).

OR

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! grin grin

1 Like

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

Cheers

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.

5 Likes

Re: FG Seeks Fresh $2.5bn World Bank Loan by hisexcellency34: 9:44am On Sep 20
Loans everyday. Who will pay?

5 Likes

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

2 Likes

Re: FG Seeks Fresh $2.5bn World Bank Loan by anonimi: 9:45am On Sep 20
NaijaRoyalty:
Government of borrow borrow

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









Atikumanager:
How could Nigeria elect someone who cannot make money?

******************************************

President Muhammadu Buhari has said his major weakness lies in not knowing how to make money.

He also disclosed that he even borrowed money to build his three houses in Daura, Abuja and Kaduna.

The President made this known while speaking on his assets during an Interview with Sun Newspaper.

According to him, “When Murtala/Obasanjo regime came, they made sure that certain grades of public officers must declare their assets when they assumed that office and they must declare when they were leaving. So, when I was sworn in as governor of North East, I declared my assets.

“I declared surprisingly, even the number of my cows then. Even if they were supposed to be producing every year, but I declared them the time I was there. And when I was leaving governorship, I became petroleum minister.

“When I was leaving to go to War College, I declared my assets. I could recall General Jemibewon then, was the Adjutant-General of the Army. He rang me and said he was sending me asset declaration form, that I must fill it, sign it before I left for the United States. And I did.

“General Jemibewon is still alive. And when I became head of state eventually, I declared my assets again.

“So, if you people are serious and interested about political officers becoming multi-billionaires, you can find out from Murtala downwards. And those of us who were not very good in making money you should pity us.

“Everybody likes money but I am not very good at making money. Let me put it that way. I borrowed from the banks to build the house in Daura and the one in Abuja that you mentioned and the one in Kano. The bank then was Barclays, now Union Bank. Kaduna State or North Central then housing scheme and the Federal Mortgage Bank for the house I am in and AIB, which was, I think, terminated by Central Bank. So, when you go through the records, you find out that the houses I built, I borrowed from there.”


http://dailypost.ng/2017/12/19/dont-know-make-money-buhari/

8 Likes

Re: FG Seeks Fresh $2.5bn World Bank Loan by obainojazz(m): 9:45am On Sep 20
undecided
They budgeted 100billion naira for the ruga stuff that doesn't make a sense.. Now borrowing to run the country.. Yeye dey smell

4 Likes

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...

1 Like

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

9 Likes

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.

5 Likes

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...

6 Likes

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

3 Likes

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