The Federal Government is set to receive around $2.2 billion single-digit interest loan from the World bank and another budget support facility from the African Development Bank.

Minister of Finance, Wale Edun, disclosed this during a press briefing at the end of Nigeria’s activities at the World Bank/International Monetary Fund Spring meeting in Washington DC, the United States on Saturday.

Speaking on the sources of international funding to the Nigerian economy, Edun listed diaspora remittances, foreign portfolio investments, and facilities from the World Bank and other international development partners.

He stated, “We have qualified for the processing just this week to the Board of Directors of the World bank of a total package of $2.25 billion of what you can call ‘the closest you can get to a free lunch’- virtually a grant. It’s for about 10- 20 years moratorium and about 1% interest.

“In addition, there is a similar budgetary support – low-interest funding from the African Development Bank (AfDB) and, clearly, there are ongoing discussions with foreign direct investors across many sectors.”

Edun also tapped issuing dollar-denominated securities specifically targeted at Nigerians in the diaspora and those with foreign-denominated savings in Nigeria as another measure to attract forex inflows into the country.

He further highlighted the efforts of the fiscal side of the economy in complimenting the recent monetary policy reforms by the Central Bank of Nigeria.

According to the minister, the issuing of government securities at an interest rate closer to the CBN’s monetary policy rate is an indication of the collaboration between both sides of the economy in tackling inflation in the country and attracting forex inflows.

Source: https://punchng.com/Nigeria-set-to-receive-fresh-$2.2bn-World-Bank-loan-Edun

Hmm

Im gonna post this there. Do not read by the way

[b]This can happen when the oil revenue windfall increases domestic demand for non-tradable goods and pushes up domestic prices leading to an appreciation of the real exchange rate which in turn reduces the competitiveness of the non-oil export sector. This will in turn lead to a reduction in non-oil exports in both quantum and value terms. The oil windfall may also lead to movement of the factors of production in the economy. For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand).

[b]This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors. With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports. The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the econ[b]omy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations. Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty

FOR THE SOURCE GO HERE


WE ARE going to borrow and keep borrowing until we follow Obi and Moghalu advice and...manufactured goods and services, and allow the free market work its magic in the power and petrol sector which means removal of subsides and cost reflective tarrifs...like some other African country...

Borrowing again?

COMRADES, this is the government which vowed never to borrow a dime, unfortunately, reverse now is the case

Toh

As long as what you are using the loans for are visible, we have no issue

While growing up, I used to hear...
"He Who Goes Borrowing, Goes Sorrowing"

Melagros:
COMRADES, this is the government which vowed never to borrow a dime, unfortunately, reverse now is the case

They can't stop borrowing, unless they diversify the economy and improve taxation to gdp ratio, and crucially...manufactured goods and services.

We will also receive $1 billion dollar from Afrexim next month

...
Loans that'll be re-looted..

Paraman:
We will also receive $1 billion dollar from Afrexim next month

I thought oil production has increased and we are saving money from "subsidy is gone"?

Why borrow billions again?

Matheusmartin:
...
Loans that'll be re-looted..

Loot peren and will be Yahaya Bellowed niyen

US, UK, China, India anc other developed countries also borrow to support their economy so I don't think borrowing is a bad idea but using it judiciously should be our concern

Where is the money from removal of subsidy and floating of the naira?

You guys never learn!

helinues:
Toh

As long as what you are using the loans for are visible, we have no issue

I still remember watching a video where this man said we cannot afford to borrow. This was when he was appointed newly as minister. I wonder why there’s a turnaround now.

Have you forgotten we still have the problem of mismanagement of funds?
Meanwhile, if you are in need of a job in any location across Nigeria, checkout all job vacancies across Nigeria using the link in my signature 👇

DMerciful:
Where is the money from removal of subsidy and floating of the naira?

You guys never learn!

Who floated the Naira?

Hmmm free lunch but make you na repay on time ... it's not virtually a grant if you are paying back... before you know ten to twenty years don reach . ..make you na use the money wisely o not investing in elephant projects...

Next is infrastructure subsidy removal then a reward of $10bn "lootable" loan to our leaders.

Sheuns:
I still remember watching a video when this man said we cannot afford to borrow. This was when he was appointed newly as minister. I wonder why there’s a turnaround now.

between then and now, subsidies have been removed. Forex subsidy. Petrol. Electricity.
Next is education and health. Then they will get a huge loan to loot for their efforts towards positioning Nigeria for recolonisation.

To be looted and shared as usual.

Good Lord!

These looters mortgage this country! Not that there's will be any project to justify the borrowing.



Money they'll loot as usual just like Buhari and his cohort did.

Fresh

Receive and Loot .. No time to check time

Loan will eventually kill this company (country) one day

.

Abeg, Na every month Nigeria dey take loan ?

Government of the loan

Kingluqman:
Abeg, Na every month Nigeria dey take loan ?

yet no infrastructure

AAHHHHHHH Eshiiin

My oga is working 💪

Time to loot sorry, I mean route the money into the proper channels