Nigeria to borrow from World Bank, China, Japan

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The presidency on Thursday said it had approved an external borrowing plan after the cash-strapped African economy plunged into official recession.

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“Low cost, long-term loans (1.25% interest, 20yr tenor)” would be sought from the World Bank, African Development Bank, China’s Exim Bank and the Japan International Cooperation Agency, it announced.

A Eurobond would also be offered “in due course” and parliament has still to sign off on the plan, President Muhammadu Buhari’s office added in a series of tweets.

Recession in Nigeria was confirmed last month, when official data showed output in the three months to the end of June fell 2.1 percent — the second successive quarter of negative growth.

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That followed months of turmoil including a failing currency, rising double-digit inflation, and foreign exchange shortages that have hit business, especially imports and investment.

The decline has laid bare OPEC-member Nigeria’s over-reliance on oil revenue and the lack of economic diversity, after global oil prices began free falling from mid-2014.

Nigeria’s government is dependent on oil export sales for 70 percent of its revenue. Militant attacks on facilities in the Niger delta have compounded the effects of the worldwide slump in crude prices.

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Buhari has also blamed the economic troubles on his predecessors, saying he inherited a treasury that was “virtually empty” and that “mind-boggling” sums of public cash had been looted.

He has vowed to recover the money, prosecute corrupt officials and streamline government, cutting waste and improving efficiency, as well as diversify the economy, particularly agriculture.

The government said the external loans would be used mainly in the agriculture, power, mining development and healthcare sectors.

A record 6.1-trillion-naira ($19.4-billion) spending plan was announced in this year’s federal budget to try to stimulate growth.

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International Monetary Fund managing director Christine Lagarde visited Nigeria in January but said at the time that no programme was needed.

12 thoughts on “Nigeria to borrow from World Bank, China, Japan

  1. Another debt for future generations. He won't be part of those that will carry the burden of repayment considering his age now. Sorry for the young shall grow

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  2. The Zoo is now Begging Bambi Allah to Japan China and the world bank.this is the kind of news i will always like to hear from the Zoo,the zoo never collapse to my satisfaction.

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  3. No, Nigeria should not borrow any money, when are we going to free from this captivity. If u borrow now, the debt will be on our great grand children. Pls let sit right and think of better opinions than this naughty one. Let stand as a country to bring this insults that some b******s that call our noble country zoo down. Let put them ashamed...

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  4. Nawa o but where is all the money the politician dey chop is coming from ?because I don't understand why they wan borrow money again and besides all the assets the president recover nko?

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  5. Bad Buhari Govt, destroying Our Time and Our Future Generations, after OBJ save us from Foreign Debts, This b*****d want to go and borrow money again from World Bank and Foreign Countries.
    Please, do NOT loans Nigeria any more, Nigeria is RICH with BAD Government.

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