The Debt Management Office (DMO) says Nigeria\u2019s indebtedness to the World Bank which grew from 6.29 billion dollars in 2015 to 13.46 billion dollars in 2022 is a positive development.<\/P>
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According to a statement by the DMO in Abuja on Wednesday, this is contrary to media reports about the nature of World Bank loans to the country.<\/P>
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The News Agency of Nigeria (NAN) reports that the media has been awash with controversy about World Bank loans to the country in recent times.<\/P>
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This followed announcement by the Minister of Finance, Budget and National Planning, Zainab Ahmed, that the Federal Government had secured 800 million dollars from the World Bank to provide post-petroleum subsidy palliatives.<\/P>
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The palliatives are meant for over 50 million Nigerians ahead of June 2023.<\/P>
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According to the DMO, loans from the World Bank come from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).<\/P>
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\u201cIDA loans are concessional, that is, they allow low charges and are for very long tenors in some cases, exceeding 30 years.<\/P>
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\u201cThese are the types of loans required to fund development in countries such as Nigeria.<\/P>
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\u201cBy accessing IDA funding, the government is actively reducing debt service costs, since non-concessional funding are usually more expensive.<\/P>
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\u201cIndeed, it will be inefficient for Nigeria to borrow from commercial sources when concessional funding sources such as ODA is available,\u201d the DMO said.<\/P>
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It said that Medium-Term Debt Management Strategy (MTDS 2020-2023) outlined effective debt management models for the country.<\/P>
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\u201cThe MTDS actually states that we will maximise funds available to Nigeria from multilateral and bilateral sources in order to access cheaper and longer tenor funds.<\/P>
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\u201cTherefore, borrowing from IDA is actually an implementation of this strategy.\u201d<\/P>
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Source: News Agency of Nigeria<\/P>
<\/P><\/p>\n","protected":false},"excerpt":{"rendered":"
The Debt Management Office (DMO) says Nigeria\u2019s indebtedness to the World Bank which grew from 6.29 billion dollars in 2015 to 13.46 billion dollars in 2022 is a positive development.According to a statement by the DMO in Abuja on Wednesday, this is c…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"yoast_head":"\n