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Despite $81bn Debt, Federal Govt Seeks Fresh $2.5bn Loan From World Bank

Despite a $2.4bn loan obtained by Nigeria in 2018, the World Bank has said it is in talks with Nigeria for a fresh loan of $2.5bn.

Revealing this to Bloomberg on Wednesday, Vice-President for the African division of the World Bank, Hafez Ghanem, said: “we’re talking about a new set of programs of about the same amount, it should be around $2.5bn.”

President Muhammadu Buhari’s government has increased its borrowing to finance government spending, with domestic debt at $55.6bn and foreign loans at $25.6bn.

The country is also faced with revenue shortfalls as the output and price of oil, Nigeria’s main export, fell in the past five years.

Nigeria has been seeking credit with low interest, long repayment periods from institutions to ease its burden, including the World Bank and the African Development Bank.

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