FG Disscuses With World Bank, AfDB For $3b Loan

Minister of State for Budget and National Planning, Mrs Zainab Ahmed, has disclosed that the Federal Government was already having discussions with the World Bank for a possible $2 billion, as well as the African Development Bank (AfDB) for another $1 billion.

Speaking in an interview on Tuesday in Abuja, the Minister said the money would be used to carry out development projects in the country.

“From the World Bank, we are hoping to get $2 billion,” Mrs Ahmed was quoted by Bloomberg as saying.

 In November 2016, the AfDB disbursed $600 million of a $1 billion loan to Nigeria, but the Minister said, “We are talking to see whether they can up it to $1 billion.”

In February 2017, Nigeria raised $1 billion of Eurobonds and further got $500 million a month later from the same process.

Proceeds from the exercise were to finance projects approved in the 2016 budget.

Yields on the bonds sold in February and maturing in 2032 was little changed at 7.23 percent at 1:09 pm in Lagos, with the drop since they were issued being 65 basis points, Bloomberg reports.

The Minister says government would be returning to the market for a new fundraising round for this year’s spending plans.

 “We should be able to do higher than what we borrowed in 2016,” she said. “It will be determined by how much we get from the World Bank and African Development Bank because that’s a lower rate. Our preference is always to get the lower rate first.”

At the moment, the National Assembly is yet to pass the 2017 budget worth N7.3 trillion. It is likely to be approved before the end next month.