According to a statement from Nigeria’s finance ministry, the World Bank loan will be reviewed and ultimately approve the country’s $2.25 billion loan request in June 2024.
The financing is divided into two parts: $750 million for the Program-for-Results Financing and $1.5 billion for Development Policy Financing.
The facility, which Nigeria’s finance minister, Wale Edun, referred to as a “free lunch,” was one of the country’s main takeaways from the World Bank and International Monetary Fund (IMF) spring meetings in 2024.
The credit has already been accepted by the World Bank board of directors and is being handled at this time.
The facility bills itself as ‘essentially a grant’ and offers a 40-year term with a 10-year moratorium at 1% interest.
During the Spring Meetings, the Nigerian delegation demonstrated the country’s ability to bounce back economically and responded strategically to international difficulties.
The World Bank loan is expected to also improve the state of the Nigerian economy.
