Foreign Loans: World Bank Debunks Report On Nigeria

Share

BY COBHAM NSA, ABUJA – The World Bank Group (WBG) says reports on its stands over Nigeria’s borrowing plans are skewed and completely misrepresent the Group’s position on the matter.

Dismissing speculations of discord with Minister of Finance, Mrs. Kemi Adeosun over Federal Government’s borrowings to stimulate the economy and finance infrastructure projects in the country, the WBG insisted that media reports quoted its comments out of context

The World Bank’s Senior Communications Officer, Mr. Rachid Benmessaoud said at no time did the Bank disparage Nigeria’s borrowing plans, noting that some reports distorted comments by its Senior Economist for Nigeria, Gloria Joseph-Raji at an event in Abuja.

Benmessaoud said in a mail to the Finance Minister that; “On October 11th, during the launch of Africa’s Pulse, the World Bank’s biannual analysis of African economies, World Bank Senior Economist for Nigeria, Gloria Joseph-Raji, was asked by a reporter to share her views on the Federal Government’s plan to increase external borrowing. 

“At no point did she mention that the World Bank and the Federal Government of Nigeria (FGN) disagree on the need to rebalance the country’s debt portfolio. Where expenditures exceed revenue, governments will need to borrow.

“In doing so, the Federal Government is trying to rebalance its portfolio towards more external borrowing with lower interest rates and longer maturities.”

Benmessaoud further quoted Joseph-Raji as praising the Federal Government’s effort at re-balancing its portfolio towards lowering the cost of its borrowing, as outlined in its 2016-2019 medium term debt management strategy released last year.

According to the mail, “The use of IDA concessional financing, among others, is supportive of the FGN’s effort in this regard, with the added focus on poverty alleviation and building shared prosperity in Nigeria.

“The latest issue of Africa’s Pulse points out that growth is Nigeria is projected to pick up from 1.0 per cent in 2017 to 2.5 per cent in 2018 and 2.8 per cent in 2019. While Government debt in 2017 is projected to rise, it remains low in Nigeria,” Joseph-Raji was also quoted as saying.

Similarly, the spokesman restated the WBG’s pledge to assist Nigeria restore macro-economic buoyancy while also strengthening on-going economic resurgence and attaining sustainable inclusive growth.

The Minister of Finance, Kemi Adeosun had, on Sunday in Washington, assured the Federal Government would be prudent and transparent in managing its foreign borrowings.

Similar Posts

Leave a Reply