SAT, JAN 20 2024-theGBJournal|The Federal Government is in discussions with the World Bank for a $1.5 billion loan aimed at supporting the budget and providing liquidity in the foreign exchange market.
Finance Minister Wale Edun, speaking at the World Economic Forum in Davos, emphasized that the loan is being sought to facilitate ongoing reforms, including the removal of fuel subsidies and the merger of the foreign exchange market.
Edun expressed confidence in securing the support, citing the government’s commitment to reforms.
The government’s strategy for stabilizing the naira involves tapping into domestic dollar savings and increasing liquidity in the foreign exchange market.
Edun highlighted crude oil sales as a primary revenue source and emphasized the importance of leveraging Nigerian savings, both within and outside the formal market.
Addressing the foreign exchange backlog, estimated at $5 billion, the Minister identified clearing this backlog as a priority for the Central Bank of Nigeria (CBN).
He proposed utilizing available liquidity within the banking system to swiftly address the backlog, either through spot or forward-rate transactions.
Looking ahead, Edun mentioned the possibility of Nigeria issuing Eurobonds later in the year, contingent on favorable interest rates.
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