Indications have emerged that the Nigerian Government is negotiating another World Bank loan to the tune of $2.5 billion after it took a $2.4bn facility in 2018,
The bank’s Vice-President for the African Division, Hafez Ghanem, told Bloomberg on Wednesday: “We are talking about a new set of programs of about the same amount, it should be around $2.5bn.”
The Muhammadu Buhari led-administration has increased its borrowing to finance its spending, with the domestic debt put at $55.6 billion and foreign loans at $25.6 billion.
The country is also faced with revenue shortfalls as the output and price of oil, Nigeria’s main export, fell in the past five years.
Nigeria has been seeking credit with low interest, long repayment periods from institutions to ease its burden, including the World Bank and the African Development Bank.