Tinubu’s Govt. To Receive Fresh Loan From World Bank On June 13(Read to see Amount)
Tinubu’s Government is set to receive a fresh loan from the World Bank on June 13.
The Federal Government of Nigeria has secured approval for a new loan amounting to $2.25 billion from the World Bank, with the announcement made on June 13, 2024. The Minister of Finance, Wale Edun, has confirmed that the loan has been qualified for processing. The loan package includes favorable terms such as a one percent interest rate, a 40-year term, and a 10-year moratorium period.
The $2.25 billion loan is intended to fund two major projects in Nigeria aimed at driving economic reforms and stability. The first project, named “Nigeria Reforms Economic Stabilization Enable Transformation Policy,” will receive $1.5 billion in funding. This initiative focuses on enhancing resource mobilization and sustainability through various fiscal measures and reforms.
The second project, “NG Accelerating Resource Mobilization Reforms,” will be allocated $750 million from the loan. This project aims to reintroduce excises on telecom services and Electronic Money Transfers (EMT) levy to boost revenue generation in Nigeria.
The loan approval signifies the government’s commitment to strengthening the Nigerian economy by diversifying revenue sources beyond oil revenues. It aligns with efforts to enhance non-oil revenue collection, improve tax compliance, and implement administrative reforms within institutions like the Federal Inland Revenue Service and Nigeria Customs Service.
Overall, the fresh loan from the World Bank is expected to support Nigeria’s economic stability, resource mobilization efforts, and resilience through targeted projects that aim to drive sustainable growth and development over the coming years.
