BREAKING: World Bank Approves 756 Billion Naira Loans For Nigeria
The World Bank said on Thursday it had approved a total of $2.1 billion, about 756 billion naira in concessionary loans to fund projects in Nigeria aimed at improving access to electricity and promoting governance.
The projects approved by the International Development Association (IDA), the bank’s low-interest arm, are expected to support Nigeria’s economic growth plan.
Growth rates in Nigeria have bounced back since the third quarter of 2016, when a recession bottomed out. But the growth returned largely due to higher oil prices, which Nigeria relies on for much of its revenue.
But has slowed again in the first quarter of 2018, as the non-oil sector struggled.
The government expects growth to rise to a pre-recession level of 7% by 2020. At the moment, it is barely above 2%.
The World Bank said more than half of the loans would be used to fund power and climate change projects and boost fiscal transparency. It also approved a $7 million, about 2.5 billion naira grant for nutrition.
Nigeria privatised most of its power sector in 2013 but retained control of its dilapidated monopoly transmission grid, often blamed for slowing growth.
Recall that the Debt Management Office, DMO on Wednesday announced that the government intends to raise $2.8 billion, about 1 trillion naira of debt from overseas to help part-finance the 2018 budget.
The DMO also said it could tap capital markets or concessionary loans from the World Bank after the 2018 budget had been approved.
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