Buhari Approves Borrowing From World Bank, China

Nigeria’s presidency has approved plans for external borrowing from the World Bank, China and Japan.

Nigeria will take on debt from institutions including the World Bank, African Development Bank, Japan International Cooperation Agency and Export-Import Bank of China, the presidency commented on Twitter.

This will include “low-cost, long-term” loans with interest rates of 1.25 percent and maturities of 20 years, according to the tweets. Details of a Eurobond will be announced “in due course.” The government is now waiting for lawmakers to approve the plans, the presidency said.

President Muhammadu Buhari announced a record 6.1 trillion naira ($19.4 billion) spending plan this year to try and stimulate the economy, which contracted in the first two quarters as oil revenue plunged.

He said he expected the government to raise about $5 billion from the Eurobond market and multilateral and bilateral lenders.