Moghalu faults FG’s $1.5bn World Bank loan, SUVs purchase for lawmakers

Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria (CBN), has faulted the federal government’s plan to borrow another $1.5 billion from the World Bank.

Moghalu, in a post on X on Monday, said the move signals that there is a “real problem” in the country.

After the federal executive council (FEC) meeting on Monday, Wale Edun, the minister of finance and coordinating minister of the economy, announced the approval of loan requests from two international lenders.

Edun said the loan request is split into two: $1.5 billion from the World Bank and $80 million from the African Development Bank (AfDB).

The minister said the $1.5 billion from the World Bank would be applied through the International Development Association (IDA) — an arm of the Bretton Woods institution, which provides free or zero-interest loans to low-income countries.

The loan, according to Edun, comes at a time when the cost of borrowing is rising as developed countries raise interest rates and restrict money, to fight inflation.

Reacting to the development on social media, Moghalu condemned the approval.

“There is a real problem when Nigeria is set to borrow another $1.5 billion from WorldBank for budget support, and SUVs worth N160 million each are reportedly to be bought for 360 members of the house of representatives,” Moghalu wrote.

“We are not yet serious as a country. Nigeria is becoming a carcass, and our political class is scavengers!”

On August 28, the federal government said it has no intentions to borrow from local or foreign organisations.

Edun said the benefits of petrol subsidy removal would be ploughed back into various sectors to boost government revenue and improve the business environment.

Recently, Nigeria’s total public debt rose to N87.38 trillion in the second quarter (Q2) of 2023, recording an increase of 75.29 percent.