FG denies report of applying for emergency loan

The Minister of Finance, Mrs. Kemi Adeosun, last night refuted a report published by Financial Times suggesting that Nigeria has applied for emergency loans from the World Bank and the African Development Bank.

The minister, in a statement by her Special Adviser on Media Matters, Mr. Festus Akanbi, said Nigeria had not applied for any emergency loan.

The statement quoted the minister as saying “the truth is that Nigeria, as part of the plans to fund the 2016 budget currently undergoing the approval process of the National Assembly, has indicated an intention to borrow N1.8trillion principally for investment in capital projects to stimulate the economy.”

She said the option of the World Bank is to ensure an optimum financing structure, noting that 2016 budget is part of the Medium-term economic framework of the Federal government, which the World Bank is aware of. The proposed budget deficit, according to her, will be funded equally through external and domestic sources. Nigeria is exploring the options of multi-lateral agencies like the World Bank and AFDB and export credit agencies such as China Exim Bank due to their concessionary interest rates.