During a joint press conference at the spring meetings of the IMF and World Bank in Washington D.C, the Minister of Finance, Wale Edun, announced that the Federal Government of Nigeria has qualified for a $2.25 billion loan from the World Bank, characterized as ‘virtually a grant’ due to its favorable terms. Additionally, the government is exploring the issuance of a diaspora bond to attract funds from Nigerians abroad and foreign investors.
The $2.25 billion loan from the World Bank features a 40-year term with a 10-year moratorium period and a one percent interest rate, making it highly advantageous for the country. Edun emphasized the significance of this funding, highlighting its potential to support Nigeria’s development goals.
In efforts to enhance debt sustainability, Edun stressed the importance of revenue generation, particularly from oil. The government aims to increase oil production to two million barrels per day, with ambitious targets set by President Bola Tinubu.
The Nigerian government is considering the issuance of diaspora bonds to tap into the significant funding potential from Nigerians living abroad. These bonds are envisioned to attract both Nigerians abroad and foreign investors, serving as an attractive investment instrument.
Dr. Olayemi Cardoso, the governor of the Central Bank of Nigeria, revealed productive discussions with International Money Transfer Operators (IMTOs) to double remittance flows through formal channels into Nigeria. A collaborative task force has been established to drive progress in achieving this target.
