Nigeria's eligibility for these loans was attributed to its recent "macro-economic moves" in the months following President Bola Tinubu's assumption of office, making these loans an attractive and cost-effective option for the country.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed to State House Correspondents that the Federal Government anticipates the disbursement of the full $1.5 billion before the end of the year, contingent on the government fulfilling its end of the agreement.
He elaborated, "The Council approved today the application for financing from the World Bank, and specifically, from the International Development Association, which serves as the virtually interest-free lending arm of the World Bank."
“The total is $1.5bn. The world today is one of the high-interest rates as the developed world looks to fight inflation. They do it by restricting money, and keeping interest rates high so that you can get inflation down.
“That means that interest rates for everybody else become not just high but very painful, if not unaffordable within that context.”
Edun clarified that Nigeria took macroeconomic moves and tough decisions to restore balance in its economy, warranting support from multilateral development banks.
“The bold, brave, courageous and decisive measures that Mr President has taken are being rewarded by processing for Nigeria $1.5bn of immediate financing, which, provided that we do everything on our side, will be in before the end of the year.
“It is based on that the World Bank is willing to consider and to process on our behalf $1.5bn of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly.
And it comes in one go. It doesn’t drip as will be done for a project and is just to support the reform effort. And that was what was presented to the Federal Executive Council, and the members approved that we go ahead with that financing given that it is affordable,” said Edun.
