Nigeria is pursuing $2.25 billion in loans from the World Bank, announced Finance Minister Wale Edun. The request, discussed after the IMF/World Bank spring meetings in Washington, D.C., includes $1.5 billion for development policy financing and $750 million for programme-for-results financing.
The Nigerian government is also planning to issue diaspora bonds later this year to attract foreign exchange into the country.
The approval for the loans is expected to be deliberated by the bank’s board in June, according to Edun.
Nigeria has grappled with foreign exchange shortages, resulting in the depreciation of its currency, the naira, against the US dollar this year. Despite this, the currency has shown signs of recovery.
Additionally, Nigeria faces challenges such as high debt levels, unemployment, and substantial central bank financing. However, the finance minister recently noted that federal borrowing from the central bank has been reduced by half.
