Finance Minister Kemi Adeosun on Tuesday has disclosed the readiness of the Federal Government to borrow at least $1 billion from the World Bank and to sign within months for a $1.3 billion loan from China to fund railway projects.
The Federal Government has been negotiating with the World Bank for a year and wants to finalise this month a reform proposal necessary for a loan application, according to officials.
The economy needs to plug a gap in its record N7.3 trillion ($23.17 billion) 2017 budget, which boosts capital expenditures by a quarter to end its first recession in 25 years due to low oil prices.
“We expected to borrow at least $1 bln dollars. There is also some possibility of doing sector specific intervention in the power sector, they are working very closely with us on power,” Adeosun told CNBC when asked about the talks with the Washington-based bank.
Nigeria had initially promised to submit an economic plan to the World Bank by the end of December but did not do so, sources told Reuters last month.
Adeosun also said Nigeria had been offered by China’s state Export-Import Bank (Exim) a $1.3 billion loan to fund railway projects.
Nigeria will also present a reform proposal to the African Development Bank (AfDB) to release a second loan tranche worth $400 million, officials have said.
The bank had paid out a first tranche of $600 million but has held back the rest pending reforms. Its president has criticized hard currency curbs hitting investment.