Amid reports that Nigeria has sought for emergency loan from the World Bank African Development Bank, the Minister of World Bank has cleared the air on the matter.
Kemi Adeosun
Minister of Finance Mrs. Kemi Adeosun last night debunked reports published by Financial Times, suggesting that Nigeria has applied for emergency loans from the World Bank and the African Development Bank.
The Minister, through her Special Adviser on Media Matters, Mr. Festus Akanbi, said Nigeria had not applied for any emergency loan.
She was quoted as saying, “the truth is that Nigeria, as part of the plans to fund the 2016 budget currently undergoing the approval process of the National Assembly, has indicated an intention to borrow N1.8trillion principally for investment in capital projects to stimulate the economy.”
She explained that the option of the World Bank is to ensure stable financing structure, pointing out that 2016 budget is part of the Medium-term economic framework of the Federal government, which the World Bank is aware of.
The proposed budget deficit, according to her, will be funded equally through external and domestic sources.
Nigeria is exploring the options of multi-lateral agencies like the World Bank and AFDB and export credit agencies such as China Exim Bank due to their concessionary interest rates.