Nigeria has successfully secured a significant financial boost after qualifying for a $2.25 billion loan from the World Bank, announced Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
Speaking at a press conference during the annual meetings of the International Monetary Fund (IMF) and World Bank Group on April 20, Edun revealed that the board approved the loan package of directors of the World Bank.
He detailed that the loan offers favorable terms, including a 40-year term, a 10-year moratorium, and a one percent interest rate.
Edun emphasized the importance of this financial injection, stating, “There is no such thing as a free lunch but it is the closest you can get to free money. It is virtually a grant.” He highlighted the significance of the loan in supporting Nigeria’s economic development and recovery efforts.
In addition to the World Bank loan, Edun disclosed that Nigeria has secured similar budgetary support and low-interest funding from the African Development Bank (AfDB). He also mentioned ongoing discussions with foreign direct investors, indicating potential investments that could further bolster the country’s economic prospects.
Addressing the need to increase government revenue, Edun outlined plans to improve the tax-to-GDP ratio from about 10 percent to 18 percent within a few years.
He stated the government’s aim to ramp up overall government revenue from about 12 percent to approximately 22 percent, essentially doubling it.
To achieve these ambitious targets, Edun highlighted the efforts of the tax reform and fiscal reform committee, which is tasked with rolling out measures to enhance efficiency in the tax sector and boost revenue generation.
