The World Bank is set to consider Nigeria’s $2.25 billion loan request in June 2024, according to a statement from the finance ministry released on Monday. The loan is divided into $1.5 billion in Development Policy Financing and an additional $750 million in Programme-for-Results Financing.
The details were provided in a statement signed by Mohammed Manga, the director of information and public relations at the finance ministry.
Wale Edun, the Minister of Finance and Coordinating Minister for the Economy, revealed during a press conference in Washington over the weekend that the loan, which he referred to as a “free lunch,” was one of Nigeria’s major achievements from the recently concluded 2024 spring meetings of the World Bank and International Monetary Fund (IMF).
“We expect that the Board of the World Bank will meet in June 2024 to consider the final approval of this financing package,” Edun said.
Contrary to this, Edun broke the news during the spring meetings that the World Bank’s board of directors had already approved the credit, which was currently in the processing stage.
Edun described the facility as offering a 40-year term with a 10-year moratorium at a 1 percent interest rate, likening it to “virtually a grant.”
“We have qualified for the processing, just this week to the Board of Directors of the World Bank, of the total package of $2.25 billion of what you can call, I mean if there is no such thing as a free lunch, but it is the closest you can get to free money,” Edun said. “It is virtually a grant. It is for about 40 years, 10 years moratorium and about 1% interest. So that also is part of the flow you can count.”
During the Spring Meetings, Edun led the Nigerian delegation in showcasing the nation’s economic resilience and strategic response to global challenges.
