Nigeria scored a win with a US$2.25 billion loan from the World Bank. The loan, which is equivalent to N2.58 trillion, boasts exceptionally favourable terms, making it practically a grant.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, broke the news during a press conference held at the International Monetary Fund (IMF) and World Bank Group meetings in Washington D.C. on Friday.
He described the loan as “virtually a grant” due to its exceptional terms. The package boasts a repayment period of 40 years, with a ten-year grace period before repayments begin, and an incredibly low-interest rate of just one per cent.
The loan is expected to support Nigeria’s economic growth. The funds can be used to bolster infrastructure development, social programmes, and other areas. The easy repayment terms mean less strain on the national budget in the coming decades.
Edun emphasised the exceptional nature of the deal, stating, “There is no such thing as a free lunch, but it is the closest you can get to free money.”
He added that Nigeria is also securing similar budgetary support and low-interest funding from the African Development Bank (AfDB).
Ezinwanne Onwuka, senior staff reporter and columnist with WAP is a Nigerian-based writer and content developer. She holds a Bachelor of Arts degree in Philosophy from the prestigious University of Nigeria, Nsukka. Her interests include reading, writing, researching and graphic designing.
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