FG Seeks $2.3b Loan from World Bank, China

By Dipo Olowookere

Minister of Finance, Mrs Kemi Adeosun, has revealed Nigeria’s intention to borrow a total of $2.3 billion from the World Bank and China.

According to her, this loan would be used to finance some capital projects in the country.

In her breakdown, the Federal Government will source for $1 billion from the World Bank and $1.3 billion from China.

She told CNBC on Tuesday that, “We expect to borrow at least $1 billion” from the World Bank, saying further that there is the possibility of China “doing sector specific intervention in the power sector, they are working very closely with us on power.”

The Minister also noted that Nigeria had been offered by China’s state Export-Import Bank (Exim) a $1.3 billion loan to fund railway projects.

It was gathered that talks on the loan from the World Bank may be finalised within the next few months.

Discussions between Nigeria and the global financial institution have been on for nearly a year, but the World Bank was adamant of getting an economic blueprint before it approves the loan. That economic plan is expected to be submitted to the World Bank anytime soon.

Also, the FG will present a reform proposal to the African Development Bank (AfDB) to release a second loan tranche worth $400 million.