Nigeria is in talks with the African Development Bank (AfDB) for a $1 billion loan to help cover its 2016 budget deficit, the finance minister, Kemi Adeosun said on Monday, September 26, 2016.
She said the loan would be concessionary and carry an interest rate of 1.2 percent, NTA News report.
“We are talking with AfDB for a $1 billion budget deficits finance support,” Adeosun told reporters following a meeting with AfDB head Akinwunmi Adesina and Nigeria’s vice president Yemi Osinbajo.
Nigeria’s economy is in recession for the first time in more than 20 years, largely due to low price for oil, sales of which generate 70 percent of government revenues.
Attacks on energy facilities in the Niger Delta have meanwhile cut crude production by around a third since the start of the year.
Nigeria has been left struggling to fund a record 6.06 trillion naira ($18.6 billion) 2016 budget that aims to stimulate growth by tripling capital expenditure.
In recent times, suggestions have been made that Nigeria sell some of its assets to fund the deficit instead of going on a borrowing binge.
On Tuesday, a summit of finance minister, state commissioners of finance and business leaders will also open in Abeokuta, Ogun state to discuss alternative income to crude oil export.