The World Bank Group has announced an approval of fresh $2.2B credit line for Nigeria. This was the final response to the nation’s request for $3b loan from the world financial agency. President Muhammadu Buhari applied for a $3 billion loan from the institution in 2019, thereby pushing the country’s debt profile to $83.4 billion.
On Tuesday. World Bank
President, David Malpass, said: “Nigeria is central to World Bank Group’s mission of tackling extreme poverty.
“The world bank is carefully targeting its support on high impact projects as the country works to tackle corruption and lift 100 million of its people out of poverty,”
However, the details behind this approval that call for worry is the escalation of the country’s debt profile even with another pending request before the Chinese government for another loan running into billions as watchers keep worrying how judiciously the loans are spent or invested.
The World Bank facility pushes Nigeria’s debt to $83.4b.
The WBG following the approval directed the federal government to invest the fund in six projects to enable a strong business environment for private sector participation, improve the country’s immunisation, expand the digital economy to promote the creation of jobs and increase public/private sector capacity, among others.
According to the WBG, the $2.2 billion for the projects will be raised through the International Development Association (IDA), the French Development Agency, the European Investment Bank and the FG.
The domestic debt is put at $55.6b, while the external debt is $25.6b.