The Nigerian government said it was set to take another $750 million loan facility from Washington-based World Bank to ramp up the economies of states and improve the quality of lives of the vulnerable.
“The Federal Government is in the process of accessing a World Bank loan of $750m on behalf of the states to stimulate the local economy and support vulnerable households’ consumption,” said Minister of Finance, Budget and National Planning Zainab Ahmed on Friday during the inauguration of Federal Steering Committees of the Nigeria COVID-19 Action Recovery and Economic Stimulus.
The Muhammadu Buhari administration has been under a borrowing spell since inception, with public debt ballooning by 155.9 percent from around N12.12 trillion or $63.81 billion to N31.009 trillion or $85.897 billion between 30th June 2015 and March 2020, according to data from the debt office.
In June, the World Bank approved a $750 million for Nigeria to help transform its tumbledown power infrastructure.
“The inauguration of the committees is expedient given the nature of this emergency intervention. Nigeria as the biggest economy in Africa cannot afford to remain in a recession.
“The survival of over 200 million population is germane to all we do and we must address the concerns of the majority of our populace,” Ms. Ahmed said at the inauguration.
The new credit line, if approved before year-end, makes Nigeria’s borrowing from the World Bank so far this year $1.5 billion.
Another Bretton Wood institution, the International Monetary Fund, disbursed a $3.4 billion emergency support loan to Nigeria in April, making Nigeria’s borrowing this year, if the $750 million facilities are granted, $4.9 billion or N1.864 trillion.
That will catapult Africa’s economic debt portfolio to N32.873 trillion.
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