The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has revealed that Nigeria is seeking a $1.5 billion loan from the World Bank to support its budget, while the International Monetary Fund (IMF) has expressed support for the West African country’s funding and praised recent improvements in the administration.
Edun who made this known during a press conference at the ongoing World Bank/International Monetary Fund Annual meeting in Marrakech, Morocco said the Nigerian government has “concluded plans” to apply for finance from the World Bank, including concessional financing from the International Development Association. The World Bank’s IDA division aids the world’s poorer nations.
At a Federal Executive Council meeting on Monday in the nation’s capital, Abuja, the cabinet will talk about the plan to apply for assistance from the World Bank, ThisDay reported. The presidency has stated that this will be the FEC’s first meeting since August 28.
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In order to support almost 40% of its 200 million people who live in poverty and to stimulate economic growth, Nigeria is looking for money as it executes a number of economic reforms.
The country’s debt has grown by about eight times in the last eight years, reaching over $110 billion, and in 2022, 96% of government revenue was used to pay off those debts.
The IMF stated it is ready to assist the administration and praised the recent changes, which included standardising Nigeria’s disparate exchange rates.
The fund was quoted by the Lagos-based Punch daily as saying, “As every member country of the IMF, Nigeria can seek IMF financing if they see this as helpful to address external imbalances.” “A request for financing has not been made to the IMF by the Nigerian authorities.”