Nigeria Expecting Another $2.25 Billion World Bank Loans as Details Show Country’s Top 5 Creditors

• Nigeria is reportedly expecting a $2.25 billion World Bank loan on June 2024 to boost economic activities
• The loans will be distributed across two significant projects to enhance non-revenue and secure the country’s economic future
• The new facility will raise Nigeria’s external debt profile to about $45 billion, as the report indicates the country’s top five lenders

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The World Bank may approve another $2.25 billion in loans for Nigeria across two significant projects on June 13, 2024.

Official documents show that the funds will be shared between two projects to boost Nigeria’s economic stability and resource mobilization capabilities.

The new loan is to be distributed across two projects

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One of the projects, reportedly named Nigeria’s Reforms for Economic Stabilisation, is to enable the Transformation (RESET) Development Policy Financing (DPF) and is set to receive $1.5 billion in funding.

The second project, the NG Accelerating Resource Mobilization Reforms (ARMOR) Programme for Results, is set to get $750 million in funding.

Reports say discussions are underway between the lender and the Nigerian government to finalize the terms of the loans.

Negotiations are essential as they shape the financial and operational frameworks that will guide the project’s implementation.

The funds are expected to boost Nigeria’s efforts to reform economic policies and enhance government resource mobilization, which is critical for the country’s long-term financial sustainability and economic resilience.

The ARMOR project is to boost non-oil revenues and protect oil and gas revenues from 2024 to 2028 at the federal level, focusing on significant tax, excise, and administrative reforms.

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Nigeria's top five creditors

The proposed RESET project consists of a standalone operation with two tranches designed to aid significant reforms that align with the government’s economic stabilization and recovery.

The new World Bank facility will raise Nigeria’s external debts to nearly $45 billion if approved.

The development comes as Nigeria’s debt stock hit a high of N97.34 trillion amid new borrowings by Tinubu’s administration.

A recent Debt Management Office (DMO) breakdown shows Nigeria’s biggest creditors.

Data from the DMO shows Nigeria’s current external debt burden is $42.469 billion as of December 2023.

Analysis of the country’s top five creditors includes the World Bank Group at $15 billion, China’s Eximbank at $5.167 billion, the International Monetary Fund (IMF) at $2.469 billion, and $1,652 billion debt from the African Development Bank (AfDB).

FG to borrow N2.5 trillion from FGN Bonds

Legit.ng earlier reported that the Nigerian government seeks to borrow N2.5 trillion from its second FGN bond auction in 2024, a recent Debt Management Office (DMO) circular said.

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The circular said the auction is set for February 19, 2o24, with a settlement date slated for February 21, 2024.

In January, the DMO offered four bonds worth N90 billion each; the February auction is the first time the Nigerian government has borrowed over N1 trillion via a single bond.

Source: Legit.ng