Nigeria FG Suspends Plan to Obtain $22.7 Billion Loan

The Nigeria Federal Government has decided to suspend its plan to obtain $22.7 billion external loan because of current realities in the global economic landscape. This was revealed by the Minister of Finance, Mrs. Zainab Ahmed on Monday.

The minister stated at the 2020 International Conference on the Nigerian Commodities Market, organised by the Securities and Exchange Commission (SEC), that the government would not go ahead with the loan, even though it was approved by the legislators in the National Assembly.

President Muhammadu Buhari requested for the loan some weeks back, which was approved before the recent turn of events.

Why The Loan Was Suspended

The Nigeria government decided to suspend the loan because the market indices do not support foreign borrowings.

“The parliament is still doing its work on the borrowing plan. One arm of the parliament has completed theirs and the other arm is still working and it is a process that is controlled by the parliament itself, so we are waiting.

“However, we are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get approvals we will defer it and watch the market and go out only when the timing is right,” she said.

Ahmed insisted that the government was not relenting on its plans to diversify the country’s economy, adding that unfolding events of the past few months, the coronavirus pandemic and the oil price war, had further reinforced the resolve to diversify the national economy.

According to her, the current global economic problems had brought to light the country’s need to shift its mindset to other revenue generating sectors in the country other than oil mindset towards all.

She said, “Government planned to prioritize expenditure in favour of major capital expenditures that would have a greater impact, and which would create job and visibility and also enhance the ease of doing business in the country.”

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