Nigeria will Get $3.5b Foreign Loan with Ease—Moody’s

By Dipo Olowookere

Moody’s Investors Service has said Nigeria will easily achieve its target of borrowing about $3.5 billion loan abroad in 2017.

Nigeria has been negotiating $1.25 billion in budget support from the World Bank and expects to get the remaining $400 million of a $1 billion credit facility from the African Development Bank (AfDB).

According to the Vice President of the Moody’s Investors Service, Mr Aurelien Mali, who is also the Senior Analytical Adviser for Africa, stated that, “The international financial institutions are ready to support Nigeria.”

He said further that, As long as it is project-based lending, the funding will be available from lenders such as the African Development Bank (AfDB), and the budget support from the World Bank will come on top of that.”

Since the prices of crude oil slumped in the international and the production of oil fell in Nigeria, the West African biggest economy declined into recession.

This has forced the government to look outside for funds to carry out some capital projects.

At the moment, Moody’s rates Nigeria’s debt at B1, four levels below investment grade.

Last month, S&P Global Ratings kept its assessment of the nation’s credit at one step lower than Moody’s.