Nigeria to receive part of $2.2bn World Bank loan soon, says Wale Edun

Wale Edun, minister of finance and coordinating minister of the economy, says in two weeks, the World Bank board of directors would consider a loan of $2.25 billion for Nigeria.

On April 21, the minister had said  the country qualified for the World Bank loan of $2.25 billion, with a 1 percent interest rate.

Speaking during Channels Television’s ‘Sunday Politics’ programme on on June 3, Edun said the country would receive part of the funding soon.

“In two weeks’ time, the board of the World Bank will consider a $2.25 billion package for Nigeria of, like I say, virtually free money or almost grant funding,” he said.

Edun said the loan has a very low interest rate and is not being given under conditionalities.

“A large part of it, $1.5 billion, is what they call ‘development policy operation’,” the minister said.

“Essentially, it is in recognition of what has been done to stabilise the Nigerian economy and get it back on the path to growth and the funding will come virtually immediately. 

“At least, the one part of it will come virtually immediately after that board meeting.”

He said the country is confident about and looking forward to the disbursement of the loan.

According to the minister, this shows that “we know how to use the multilateral development banks to our advantage”.

‘WHY MULTINATIONAL FIRMS ARE LEAVING NIGERIA’

Speaking further, Edun said in the past, foreign companies exited the country due to lack of access to a liquid foreign exchange (FX) market. 

“When we look at the economic climate, one of the major drawback elements for them is that they did not have a liquid foreign exchange market,” he said.

 “The country currently has a willing buyer-willing seller FX market. 

“It is elevated, maybe it is not at levels we would like it to be, but it is when you get the inflation down that you can stabilise the exchange rate and even get it coming down — similarly with the interest rates.”

Edun said the fight for an improved environment for “big” investors is ongoing.

The minister also said inflation as well as food prices are projected to drop over the next few months.

In April, Nigeria’s inflation rate rose to 33.69 percent — from 33.20 percent in March.

According to the National Bureau of Statistics (NBS), food inflation rose by 15.92 percent points to 40.53 percent in April, compared to the 24.61 percent in the corresponding period of 2023.