The World Bank has said that it is in talks with Nigeria for a fresh loan of $2.5bn.
This is despite a $2.4bn loan obtained by Nigeria in 2018.
The Vice-President for the African division of the World Bank, Hafez Ghanem, said this during an interview with Bloomberg on Wednesday.
Ghanem said, “We’re talking about a new set of programs of about the same amount, it should be around $2.5bn.”
Faced with revenue shortfalls as the output and price of oil, Nigeria’s main export, fell in the past five years, President Muhammadu Buhari’s administration has increased borrowing to finance government spending, with domestic debt at $55.6bn and foreign loans at $25.6bn.
To ease the mounting debt burden, Nigeria has sought more credit with low interest and long repayment periods from institutions including the World Bank and the African Development Bank, Punch reports.