Nigeria is actively pursuing up to $2.25 billion in loans from the World Bank as part of its efforts to strengthen its economy, according to a statement released by the government following the IMF/World Bank spring meetings in Washington, D.C.
Finance Minister Wale Edun announced the country's intention to seek the loans, which it anticipates the World Bank's board will approve in June. The loans are expected to be a combination of $1.5 billion in development policy financing and $750 million in programme-for-results financing.
Additionally, Nigeria plans to issue diaspora bonds later this year in a bid to attract much-needed foreign exchange into the country.
The statement highlighted that the World Bank would convene in June to consider final approval of the loan package. However, the World Bank has not yet commented on the matter.
Nigeria, traditionally Africa's largest oil exporter, has been grappling with a shortage of foreign exchange, leading to a depreciation of its naira currency against the U.S. dollar. Despite recent rebounds, the currency faced record lows earlier this year.
President Bola Tinubu inherited an economy burdened by record debt, high unemployment rates, and significant central bank financing. However, Edun, in a recent interview with Reuters, noted that the government has managed to halve federal borrowing from the central bank.
