The Muhammadu Buhari government has announced that it has approved an external borrowing plan in response to the economic recession in Nigeria.
The presidency announced on Thursday, September 8, 2016 that “Low cost, long-term loans (1.25% interest, 20yr tenor)” would be required from the World Bank, African Development Bank, China’s Exim bank and the Japan International Cooperation Agency.
In a series of tweet, President Buhari’s office said that a Eurobond would be offered in due course as the parliament is yet to sign off the plan.
Nigeria was certified to have slipped into recession in August 2016, and since then, Nigeria has suffered a failing currency, rising inflation, and foreign exchange shortages.
The government said the loans collected would be used in mainly in agriculture, power, mining development and healthcare.
Nig External Borrowing Plan -low-cost, long-term loans (1.25% interest; 20yr tenor)- approved by FEC. Now awaiting @nassnigeria approval 1/
— Government of Nigeria (@NigeriaGov) September 8, 2016
The External borrowing will be directed at the following sectors:
Agriculture
Power (esp. Transmission)
Mining Development
Healthcare
/4— Government of Nigeria (@NigeriaGov) September 8, 2016
Apart from these loans, there will also be a FGN Eurobond offer (details in due course) /3
— Government of Nigeria (@NigeriaGov) September 8, 2016
The (concessional) External loans will be provided by institutions like @WorldBank @AfDB_Group @jica_direct, China Exim Bank 2/
— Government of Nigeria (@NigeriaGov) September 8, 2016
