By Adedapo Adesanya
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has declared that Nigeria no longer relies on borrowed funds for its projects, or falling behind in its repayments to international creditors.
He made the disclosure when he was quizzed on the state of the economy on Sunday Politics on Channels TV by the show’s anchor, Mr by Seun Okinbaloye, on Sunday in Abuja.
He said the federal government under President Bola Tinubu has settled about N7.3 trillion in ways and means advances to the Central Bank of Nigeria (CBN).
The Minister stated that the country has repaid hundreds of millions of Dollars to international banks to maintain the country’s reputation with international creditors and investors.
“Nigeria is no longer living on borrowed money. It is no longer living on drawing ways and means. We have paid back millions of Dollars to international banks. We have kept the reputation of the country intact.
“We have paid back N7.3 trillion of outstanding overdue obligations. That is an overdraft at the central bank. The government has put in place a robust mechanism not just on revenue, but on expenditure to ensure that Nigeria’s money is spent feasibly, transparently and accountably,” he said in the interview monitored by Business Post.
He also reiterated that the board of the World Bank will vote to decide on a $2.26 billion loan package to Nigeria in two weeks and how it will improve the country’s foreign exchange liquidity problem.
“What Nigeria has done is to encourage the support and commitment of them that can fund these cheap loans. In two weeks, the World Bank will consider a $2.25 billion package for Nigeria for virtually free grant funding,” Mr Edun added.
Responding to certain observations from Bretton Woods Institutions like the International Monetary Fund (IMF) and the World Bank affected its relationship with Nigeria, Mr Edun said this was not the case.
He explained that the perception that these institutions impose stringent conditions for loans isn’t entirely accurate, noting that their financing options are concessionary.
Mr Edun added that the loan from the World Bank to Nigeria does not come with any conditions.
“It is free money,” he said.
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