See why Nigerian govt is looking at taking new loans from World bank, AFDB

• The Nigerian government is making plans to take up new loans in the coming months as public debt jumps
• The move is the government said is to finance finance several products listed on the 2024 aimed at reducing poverty
• The new loans in the next one year are expected from the World Bank and the Africa Development Bank

The Nigerian government is expecting to borrow $4.4 billion from World Bank and the African Development Bank(AfDB) in the next 12 months.

Since assuming office, President Bola Tinubu has already collected a total of $4.95 billion in loans from the World Bank.

Nigerian govt to take up new loans Photo credit: peeterv
Source: Getty Images

Punch reports that the new loans is expected to push Nigeria public debts to above N100 trillion mark.

According to data from Debt Management Office, the nation’s public debt is at approximately N97 trillion as of December 2023.

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With the new borrowings, each citizen's debt will rise to N436,677 when the N100 trillion debt is divided by a population of 229 million.

Details of $4.95 billion loan from World Bank to Nigeria

The World Bank approved loans for various projects in line with its mandate to reduce global poverty.

The global institution listened to countries demands for funds for projects that are targeted at infrastructure development, education, healthcare, and environmental sustainability.

Since coming into power, the Tinubu administration have approached world bank for different needs.

Here is a breakdown of loans approved by world bank in one year

The World Bank approved funding for six projects:

• $750m for power sector financing approved on June 9, 2023.
• $500m for women empowerment approved on June 27, 2023
• $700m for girl child education in September 2023
• $750m for renewable energy solutions in December 14, 2023
• The latest from world bank is a sum of $2.25bn comprising $1.5bn for reforms on Economic Stabilisation to Enable Transformation Development Policy Financing Programme.
• $750m was also apportioned to enhance non-oil revenues and protect oil and gas revenue.

New borrowing plans

Aside the World Bank, Nigeria will be expecting new loans expected from the African Development bank.

AfDB has already approved $134 million for Nigeria to implement an emergency food production plan.

Additionally, there are plans to provide a $1.7 billion economic and budget support loan, as well as to launch a $1 billion agro-industrial project in 28 states.

Tinubu’s govt invites Nigerians to save

Earlier, Legit.ng reported that Nigeria's Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, has announced two-year and three-year savings bonds for October 2023.

According to a statement by DMO, the offer opens on October 03, 2023, and closes on October 06 2023.

The debt office also said the bonds come with an interest rate of up to 12 per cent, and subscriptions will be open for four days.

Source: Legit.ng