Uncategorized Nigeria eyes $2bn loan from World Bank, AfDB‏

Nigeria eyes $2bn loan from World Bank, AfDB‏

Finance Minister Dr. Ngozi Okonjo-Iweala
Finance Minister Dr. Ngozi Okonjo-Iweala

(AA) – Nigeria is planning to borrow $2 billion from the World Bank and the African Development Bank (AfDB) in a bid to augment its 2015 fiscal budget, which has been badly affected by dwindling oil revenues.

“We have entered negotiations with international financial institutions – specifically, the African Development Bank and World Bank,” Finance Minister Ngozi Okonjo-Iweala told reporters in Abuja on Thursday.

She said the two banks already had resources already programmed for Nigeria “in the borrowing plan.”

“We have asked them to turn these resources into budget support for us,” said the minister. “We are negotiating for $2 billion, which will come in  foreign exchange.”

She defended the loan, which, she said, carried a favorable interest rate.

“The terms of the AfDB loan are quite reasonable at 3 to 4 percent, compared to what you get outside,” said the minister, without providing the interest rates carried by the World Bank loan.

“This is money that they have set aside for us. We have decided to… use it for budget support in the form of foreign exchange,” she explained.

Nigeria’s foreign currency earnings have fallen drastically amid tumbling oil prices that have depleted its foreign currency reserves, which now stand at less than $3 billion – down from over $45 billion in 2010.

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