Nigeria Has Not Applied For Emergency Loans, Says Finance Minister

LoansThe Minister of Finance, Mrs Kemi Adeosun, has refuted a report suggesting that Nigeria has applied for emergency loans from World Bank and African Development Bank (AFDB).

A statement made available by her Special Adviser on Media Matters, Mr Festus Akanbi, revealed that Nigeria did not apply for any emergency loan.

The statement quoted the Minister as saying “the truth is that Nigeria, as part of the plans to fund the 2016 budget currently undergoing the approval process of the National Assembly, has indicated an intention to borrow N1.8trillion principally for investment in capital projects to stimulate the economy”.

The Finance Minister said that the option of the World Bank is to ensure an optimum financing structure, noting that the 2016 budget is part of the medium-term economic framework of the Federal Government, which the World Bank is aware of.

According to her, the proposed budget deficit will be funded equally through external and domestic sources.

Nigeria is exploring the options of multilateral agencies like the World Bank and AFDB and export credit agencies such as China Exim Bank due to their concessionary interest rates.

Mrs Adeosun said that the need to invest in infrastructure to stimulate the economy and the long-term payback period of capital projects demands that lowest cost of fund be obtained.

“Nigeria, as a member of World Bank Group is entitled to access available funds like every member-country,” she said.