Hopes of the
Nigerian on the street that the recession may be over sooner rather than later
may have run into bumps as NASDAQ claims that the international loans the
government is pursuing have not yet been considering by the various
international financial institutions requested. This is as a result of the
inability of the FG to present the required economic reform plans, according to
one of the banks and sources close to the matter.
·
World Bank
The World Bank and the FG have been in talks for
over a year now on accessing loans required to drive the infrastructural
development of the country and stimulate its economy. FG had the required
economic reform plans, according to one of the banks and sources close to the
matter.
Till date however, the plans have not yet been
submitted and the FG is keeping mum about why as Nigerian finance minister Kemi
Adeosun and the World Bank declined to comment. The result is that the World
Bank cannot consider a loan yet, says NASDAQ.
·
African Development Bank
The AfDB had last year approved the release of the
first tranche of a $1 billion loan to the country but have refused to approve
the second tranche due to the inability of the government to produce necessary
documents. “We are waiting for the economic policy recovery programme and the
policy framework for that,” AfDB president Akinwumi Adesina told Reuters
on the sidelines of the World Economic Forum in Davos, Switzerland.
Considering that the country is depending on about
$4 billion loans from the World Bank and other foreign institutions and $1
billion through Eurobonds to plug a yawning budget deficit and fund badly
needed infrastructure projects, one would have thought every measure would be
in place to ensure swift access of these funds. However, this has not been the
case.
The failure to secure the funds, and to present a
reform programme, could also deter some investors from Nigeria’s planned $1
billion Eurobonds sale in March.
A Nigerian financial source said the government
was working with a consultancy on putting together a package of proposed
reforms. The source, who declined to be named as the matter is confidential,
did not elaborate.
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