The Nigerian Government is expected to secure a $2.25 billion loan from the World Bank in June 2024. This funding will be received through two pivotal development projects, notably the Nigeria Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing (£1.5 billion) and the NG Accelerating Resource Mobilisation Reforms Programme-for-Results (£750 million).
According to a document accessible on the World Bank’s website, the Nigerian Government may introduce levies on telecom services and an EMT levy on electronic money transfers within the Nigerian Banking System, alongside other tax measures.
The loan package, approved by the Board of Directors of the World Bank, offers a 40-year term with a 10-year moratorium period and a nominal 1% interest rate.
Wale Edun, the Minister of Finance, provided further insights during the spring meetings of the International Monetary Fund and the World Bank last month.
He said, “We have qualified for the processing just this week to the Board of Directors of the World Bank of a total package of $2.25bn of what you can call ‘the closest you can get to a free lunch’- virtually a grant. It’s for about 10- 20 years moratorium and about one per cent interest.”
It is believed that the funds will strengthen Nigeria’s efforts in reforming economic policies and enhancing government resource mobilisation, essential for the country’s long-term financial sustainability and economic resilience.