FG TO TAKE LOAN FROM WORLD BANK AND OTHERS

The federal government is set to take external loans from the World Bank, African Development Bank, Japan International Cooperation Agency, and Export-Import Bank of China, Bloomberg reported on Thursday.

This will include low-cost and long-term loans with interest rates of 1.25 per cent and maturity of 20 years. Government is now waiting for lawmakers to approve the plans.

President Muhammadu Buhari had announced a N6.1tn ($19.4bn) spending plan aimed at stimulating the economy this year. The economy slowed down in the first two quarters as oil revenue plunged. He expected the Federal Government to raise about $5bn from the Eurobond market and multilateral and bilateral lenders.

The Debt Management Office had last month asked banks to place bids by September 19 if they wished to manage a $1bn Eurobond sale.

The Minister of Finance, Mrs. Kemi Adeosun, told bond investors in London in June that Nigeria was close to securing about $3bn of funding from the World Bank and African Development Bank.