FG Approves Loans From World Bank, China, Japan At 1.25 Percent Interest

The Federal Government has approved plans for long-term loans from the World Bank, China and Japan with interest rates of 1.25 per cent and maturity of 20 years.

According to reports, the loans would be received from institutions such as the World Bank, African Development Bank, Japan International Cooperation Agency, and Export-Import Bank of China.

According to the Presidency, the government is now waiting for lawmakers to approve the plans adding that details of a proposed Eurobond due later this year would be announced in due course.

THEWILL recalls that President Muhammadu Buhari had announced a N6.1tn ($19.4bn) spending plan aimed at stimulating the economy this year saying he expected the Federal Government to raise about $5bn from the Eurobond market and multilateral and bilateral lenders.

Similarly, the Debt Management Office (DMO) had last month asked banks to place bids by September 19 if they wished to manage a $1bn Eurobond sale while the Minister of Finance, Kemi Adeosun, in June, told bond investors in London that Nigeria was close to securing about $3bn of funding from the World Bank and African Development Bank.

Story by David Oputah