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The federal government of Nigeria is on the brink of securing a substantial budget support facility amounting to $1.5 billion from the World Bank, announced Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. This significant development was disclosed during the Nigerian Delegation briefing at the International Monetary Fund (IMF)/World Bank Annual Meeting held in Marrakech, Morocco.

The Minister explained that the ongoing discussions with the World Bank, a leading multilateral development bank known for funding projects and programs in developing countries, are nearing fruition. This financial support is made possible through the International Development Association (IDA), which provides concessional funding to poorer nations. Notably, Nigeria's economic conditions meet the criteria for borrowing under this program, and the associated interest rates would effectively be zero.

Mr. Edun emphasized that there is no stigma associated with accessing World Bank funding for development initiatives. The budget support facility has long been in the works and is expected to receive approval during an upcoming Federal Executive Council meeting.

While addressing the International Monetary Fund's recommendation to increase taxes and interest rates, Mr. Edun clarified that Nigeria is not currently engaged in any loan program with the IMF, and as such, he was not privy to the specific proposals made in that regard.

Regarding the utilization of the Central Bank of Nigeria (CBN) to fund the budget, the Minister highlighted President Bola Ahmed Tinubu's commitment to adhere to statutory limits. He stressed the importance of close cooperation between monetary and fiscal authorities, recognizing the need for a balanced approach to monetary policy.

Mr. Edun acknowledged the challenges posed by high debt service in Nigeria and underscored the importance of exploring opportunities to restructure and improve the conditions under which debt is borrowed.