Foreign loans have not been requested - Minister Says

ayodele johnson

February 2, 2016 9:54 AM

All hands has to be firmly on deck in order to correct the flaws that has economically preceded the present government

Minister of Finance, Kemi Adeosun

The Minister of Finance, Mrs. Kemi Adeosun said the country is yet to apply for foreign loans from the multilateral organisations able to assist it with one.

According to her, Nigeria is now exploring local and domestic sources to fund the N1.8tn deficit in the 2016 budget currently undergoing approval at the National Assembly.

Due to their concessionary interest rates, the country is looking at borrowing from multilateral agencies such as the World Bank and African Development Bank and export credit agencies like the China Exim Bank.

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She stated this in reaction to a report by the Financial Times which suggests that Nigeria had applied for emergency loans from the World Bank and the AfDB.

Through a statement released by the Special Adviser on Media Matters, Mr. Festus Akanbi, she said, “The truth is that Nigeria, as part of the plans to fund the 2016 budget currently undergoing the approval process of the National Assembly, has indicated an intention to borrow N1.8tn principally for investment in capital projects to stimulate the economy.”

Regarding the interest of seeking loans from the World Bank, she mentioned that the option of the World Bank is to ensure an optimum financing structure, noting that the 2016 budget is part of the medium-term economic framework of the Federal government, which the World Bank is aware of.

Nigeria is still in the middle of a tumultuous economic strain.

All hands has to be firmly on deck in order to correct the flaws that has economically preceded the present government.

ayodele johnson