Nigeria Seeking $11bn World Bank Loan

Nigeria is holding talks with the World Bank to help it fund a forecast $11billion budget deficit.

However, Finance Minister, Kemi Adeosun said in a statement that it was not applying for an “emergency loan.”

Nigeria is believed to be looking for around $3.5 billion from the World Bank and the African Development Bank.

Africa’s largest economy has been hit hard by the recent fall in oil prices, and the government needs to find new sources of income to fund its budget.

Last year’s government budget was largely financed by oil revenue.

Ms Adeosun said that “Nigeria, as a member of World Bank Group is entitled to access available funds like every member-country,” but she is also looking at the domestic market as a means to get finance.

“No application for loans has been made. We are simply discussing options for funding [the] 2016 budget,” she added.

Chief Africa Economist for Standard Chartered Bank, Razia Khan told the BBC that going to the World Bank could be attractive as it may offer Nigeria better terms for a loan than it would get from the international money markets.

Nigeria is deliberately boosting spending on infrastructure development to try to boost the economy as it tries to deal with the oil price shock, she added.

The country is also under pressure to devalue the national currency, the Naira, as it tries to cope with the impact of declining oil price.

Hot this week

Ecobank Marks 14th Ecobank Day Across Nigeria, Empowering Students with Digital Skills for the Future

Hope Fountain Foundation for the Deaf, Agege, Lagos. Ecobank Nigeria...

Leadway Named Insurance Company of the Year at 2026 BusinessDay BAFI Awards

L–R: Chief Executive Officer, Creato Urban Limited, Odion Aleobua;...

Emergency: Rising Prices Worsen Nigeria’s Food Insecurity—Orodata

Rising food prices and the high cost of nutritious...

Fidelity Bank Excels at 2026 BAFI Awards, Wins Two Awards

L-R: Mobolaji Sunmoni, Team Lead, Upstream; Abimbola Ogunyemi, Team...

Fidelity Bank: Celebration of Beauty Industry Excellence

Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe...

Topics

NEXIM Bank to Support Growth of Mining Sector

“Solid minerals, along with the other three sectors of...

Sanlam, Allianz Merge to Enhance Operations in Nigeria

Sanlam, Africa's biggest non-banking financial services powerhouse, and Allianz,...

The Adesola Adeduntan-Led FirstBank: 130 Years of Enabling Success

Dr. Adesola Adeduntan In a country with short-lived corporate excellence...

Global Airlines Financial Monitor [March 2O16]

Key Points: · Global airline share prices continued their recovery...

Unity Bank Disburses Over N500m Through SHOCOF to Support Traders

As part of efforts to promote SMEs and strengthen...

MainOne Listed as Microsoft Connectivity Provider for Nigeria

MainOne, West Africa’s leading communications Services Company and operator...

Mutual Benefits Assurance: 2O Years of Creating Value!

Mutual Benefits Assurance Plc is 2O! At the 2Oth Anniversary...

Ecobank Nigeria Hosts Adire Lagos Exhibition Fair

Left:  Founder, Chief Responsibility Officer, Ruff 'n' Tumble/ Founder,...