Nigeria’s Minister of Finance Wale Edun, recently relayed that Nigeria is in the perfect position to attain a loan from the World Bank.
During a press conference, he noted that Nigeria qualifies for a $2 billion loan from the global lender. He also noted that the African Development Bank has been of help with its budgetary support and low-interest funding.
The finance minister during a press conference that took place on April 20 at the World Bank Group and International Monetary Fund (IMF) annual meetings, noted that Nigeria is prime for a loan package from the World Bank, to address some of the country’s pressing challenges.
As seen in the Nigerian newspaper, The Cable, the minister relayed during the press conference that the loan package which has a 40-year duration, a 10-year moratorium, and a one percent interest rate, was approved by the World Bank Board of Directors.
“If you look at the fact that we have qualified for the processing, just this week to the board of directors of the World Bank of a total package of $2.25 billion,” the finance minister stated
“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. It is about 40 years, 10 years moratorium, and about one percent interest. That also is part of the flow that you can count,” he added.
He also made mention of the assistance Nigeria has received from the African Development Bank (AfDB), during this economically challenging time.
“Clearly, there are also ongoing discussions with foreign direct investors. Some of these things take longer than you expect but they are relatively advanced discussions on major foreign direct investments flows into the country, specific transactions with specific companies, institutions, and authorities,” he stated.
According to the finance minister, one percent of Nigeria’s GDP is spent on a couple of comparatively costly incentives including duty waivers, and tax exemptions. He mentioned that Nigeria aims to raise the tax-to-GDP ratio from around 10% to 18% moving forward.
To this effect, a tax reform committee has been set up and taxed with the responsibility of creating a set of guidelines for enhancing tax sector productivity and raising revenue.