Failure to submit reform plan delays $1bn World Bank loan to Nigeria Due to Nigeria’s continuing recession, the Federal government planned to borrow
Failure to submit reform plan delays $1bn World Bank loan to Nigeria
Due to Nigeria’s continuing recession, the Federal government planned to borrow at $1 billion from the World Bank as well as present the economic reform proposals required by the bank according to Reuters.
For the past one year, Nigeria has been in talks with the World bank negotiating the terms of the loan to make up for the budget deficit of $7 billion for 2016 majorly to fund key infrastructure development. However, the process was delayed by the failure of Nigerian government to submit its economic recovery plans as agreed by ending of December 2016.
The Federal Government has not yet stated the exact amount it will borrow apart from saying it plans to raise $5 billion abroad. It is also not known when it plans to present its proposed reforms to the institution.
A World Bank’s spokeswoman said the economic proposals are the “basis on which the World Bank will determine with the government the most appropriate lending instrument to support the implementation of the reform plan.”
In the mean time, the African Development Bank (AfDB) is delaying another $400 million, which is the second tranche of a $1 billion loan, due to the reform plan because Nigeria ought to submit its economic proposals to the AfDB and World Bank at the same time some government officials said.