Report: Tinubu’s Government Plans Fresh Loans From 2 Institutions, Public Debt To Rise Above N100trn

• The Nigerian government is making plans to take up new loans in the coming months as public debt jumps
• The move the government said is to finance several projects listed in the 2024 budget aimed at reducing poverty
• The new loans in the coming months are expected from the World Bank and the Africa Development Bank

The Nigerian government will look to borrow $4.4 billion from the World Bank and the African Development Bank(AfDB) in the next 12 months.

Since assuming office, President Bola Tinubu has already borrowed $4.95 billion from the two institutions.

Punch reports that the new loans are expected to push Nigeria's public debts above the N100 trillion mark.

According to data from the Debt Management Office, the nation’s public debt is approximately N97 trillion as of December 2023.

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With the new loan, each citizen's debt will rise to N436,677 when the N100 trillion debt is divided by a population of 229 million.

Details of $4.95 billion loan from World Bank to Nigeria

The World Bank approved loans for various projects in line with its mandate to reduce global poverty.

The global institution listened to countries' demands for funds for infrastructure development, education, healthcare, and environmental sustainability.

Since coming into power, the Tinubu administration has approached the World Bank for different needs.

Here is a breakdown of loans approved by the World Bank in one year

The World Bank approved funding for six projects:

• $750m for power sector financing approved on June 9, 2023.
• $500m for women empowerment approved on June 27, 2023
• $700m for girl child education in September 2023
• $750m for renewable energy solutions on December 14, 2023
• The latest from the World Bank is a sum of $2.25bn comprising $1.5bn for reforms on Economic Stabilisation to Enable Transformation Development Policy Financing Programme.
• $750m was also apportioned to enhance non-oil revenues and protect oil and gas revenue.

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New borrowing plans

Aside from the World Bank, Nigeria will also get new loans from the African Development Bank.

AfDB has already approved $134 million for Nigeria to implement an emergency food production plan.

Additionally, there are plans to provide a $1.7 billion economic and budget support loan and launch a $1 billion agro-industrial prTinubu's 28 states.

Tinubu’s govt invites Nigerians to save

Earlier, LegNigeria'sorted that Nigeria's Debt Management Office (DMO), on behalf of the Federal Government of Nigeria, has announced two-year and three-year savings bonds for October 2023.

According to a statement by DMO, the offer opens on October 03, 2023, and closes on October 06 2023.

The debt office also said the bonds come with an interest rate of up to 12 per cent, and subscriptions will be open for four days.

Source: Legit.ng