By Adebayo Obajemu

It has been disclosed that Nigeria is close to securing a loan of $1.5 billion and another $1-1.5 billion for the Federal Government and states respectively. This was disclosed by Nigeria’s Minister of Finance Zainab Ahmed.

The fund is being sourced from the World Bank.

The minister made this known in a Citi Bank Investor update call with the Federal Government of Nigeria and organized by Citi Bank.

The update titled “Covid-19 Economic and Budgetary Update” had the following representing Nigeria on the panel;

Mrs. Zainab S. Ahmed – Finance MinisterMr. Godwin Emefiele – CBN GovernorMs. Patience Oniha – DG DMOMr. Ben Akabueze – DG Budget OfficeAnd a representative of the Hon. Minister of Health.

Mrs. Ahmed stated that negotiations with the World Bank “is on course” for a $1.5 billion facility for the Federal Government and another $1-1.5 billion for State Governments.

According to her “World Bank Negotiations is on course and we are looking at world bank going to the board on 6th of August for Nigeria’s approval. They have met largely all the conditions for the facility.

She also confirmed the amount Nigeria is looking to raise from the World Bank. “The amount we are raising in the first instance is $1.5 billion for FG and around September October we are hoping to close out on the facility meant for states and the amount is meant to be $1-1.5 billion.”

It was widely reported last week that the Government was planning to inject a bailout of N2.3 trillion into the economy which it hopes to source from three sources.