The Financial Times on Sunday reported that Nigeria was planning to obtained a $3.5b loan from the World Bank and African Development Bank (AFDB). Nigeria has approached the World Bank for a $2.5 billion and another $1 billion from the AFDB.
Whilst the World Bank will typically require IMF consent to disburse any loan the, AFDB will also need to endorse Nigeria’s budgetary plans.
The AFDB visited the Ministry of Budget and Planning basically endorsing the 2016 budget calling it “good and ambitious”.
Country Director of AfDB, Ousmane Dore, said the bank would assist Nigeria to achieve its efforts in poverty reduction.
‘’Nigeria is having an impressive and a better economic direction that would attract foreign investors”.
This will come as good news to Nigeria and a major first step towards securing fiance for the 2016 Budget. The IMF president similarly commented on the 2016 budget when she was around saying that the IMF will audit the budget to ensure its viability.
A team of economists is going to come here (Nigeria) next week to review and audit (the bill) and have a good discussion with the government authorities to really assess whether the financing is in place, whether the debt is sustainable, whether the borrowing costs are sensible and what strategy must be put in place in order to address challenges going forward.”
