World Bank Approve $2.25 billion Loan for Nigeria

The World Bank approves $2.25billion   Loan to Nigeria to help it revive the Nigerian economy. In a statement entitled ‘supporting  Nigerian Homegrown Reform: New World Bank financing for Inclusive Growth and Revenue Diversification’ the world bank has on 13th June, 2024 approved bi-operation of 1.5billion for economic transformation to enable the country reset the country economy. In or order to drive growth, the $1.5billion will be deployed in critical economic sector. Simultaneously, $750 million, was mapped for mobilization of resources to drive growth and increase productivity in Nigerian economic sphere.

In appreciating the WB, the presidency noted that this loan will enable Nigeria diversify the economy and tilt towards revamping the Agric sector. This according to the presidency would help to drive productivity which in turn helps to strengthen the macroeconomic strides.

However, Nigeria have begun to ask questions as to the relevance and timing of such loan. Economist have in their opinion noted that such loan will not have significant impact on the economy. Note that this is coming a few weeks after Nigerian Labour Congress went on strike.

Significantly, questions not answered include but not limited to; at what interest rate was the loan given? what are the indices to measure the application of such loan? what is the feasibility of legislative oversight over the spending of the above loan? How is the loan going to be paid back? and most importantly, is the loan going to be deployed in sector that would consequently generate money?

Loans in Nigeria over the years have not had significant effect in developing the economy and the country as a whole. Instead, we have continuously borrowed with nothing to show for it.