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FG to Receive $2.25bn Loan from World Bank

On June 13, 2024, the Federal Government is set to receive fresh loan funding from the World Bank, totaling $2.25bn. This funding comes after the Minister of Finance, Wale Edun, announced the nation’s qualification for a loan during the spring meetings of the International Monetary Fund and the World Bank.

Edun described the loan as almost like a grant, with a one percent interest rate. The package, approved by the World Bank Board of Directors, offers a 40-year term with a 10-year moratorium and a nominal one-percent interest rate.

The funding will be allocated to two major development projects. The first project, Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing, will receive $1.5bn. The second project, NG Accelerating Resource Mobilization Reforms Programme-for-Results, is proposed to receive $750m.

Additionally, there are indications that the government might reintroduce excises on telecom services and the EMT levy on electronic money transfers through the Nigerian Banking System, among other taxes.

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