Nigeria Requests $3.5bn Loan From World Bank To Fund Budget Deficit
The Financial Times reports that Nigeria has requested a loan of $3.5 billion from the world bank as well as the African Development Bank.
The loan amount is to fund the deficit in Nigeria’s proposed 2016 budget.
Falling oil prices and a fall in the value of the Naira means that a budget of N6.08 Trillion will likely be funded by massive borrowing.
IMF Chief, Christine Lagarde visited Nigeria last year and denied claims that she was in the country to facilitate a loan facility for Nigeria.
The World Bank is expected to provide $2.5 billion while the African Development bank is to loan Nigeria $1 billion.
Nigeria’s minister of finance told The Financial times that borrowing was not an emergency measure but the ‘cheapest way to fund the budget’.