Nigeria is seeking loans from the World Bank, the African Development Bank (AfDB) and other lenders to help cover this year’s massive budget deficit, the government and bank officials have said.
The deficit is projected at 2.2 trillion naira the equivalent of US$11 billion, out of a total budget of 6.08 trillion naira, they said on Monday, confirming projections first given in President Muhammadu Buhari’s December budget announcement.
The budget plan, which includes sharply increased spending to stimulate the economy, calls for 1.8 trillion naira to be covered by borrowing from multilateral organisations — which the government believes is the cheapest funding option.
The fall in global oil prices since mid-2014 has slashed revenue for the oil-dependent nation, which derives more than 90 percent of its foreign exchange earnings from crude sales.
