Nigerian Govt reveals why it’s seeking fresh $2.5bn World Bank loan

The Minister of Budget and Economic Planning, Atiku Bagudu, says the proposed 2024 supplementary budget would be partly financed with the N50 billion Presidential Infrastructure Development Fund, PIDF, currently held by the National Sovereign Wealth Investment Authority, NSWIA.

Bagudu, however said that the N50 billion was not sufficient to fund the ‘Renewed Hope Transformational Projects’, prompting the Federal Government to seek a $2.5 billion loan from the World Bank.

He made this disclosure while briefing the joint session of the Senate and House of Representatives committees on National Planning and Economic Affairs regarding the proposed Supplementary Appropriation Bill.

He revealed that the World Bank’s management would soon convene to decide on the loan’s approval.

According to him, the entire supplementary budget, which was still being formulated, would be allocated to four identified transformational projects.

The minister said the projects include the Lagos-Calabar Coastal Road, the proposed Sokoto-Badagry Road, the completion of ongoing railway projects for which the Federal Government had not yet provided counterpart funding and the rehabilitation and expansion of dams and irrigation schemes to boost agricultural production.

Bagudu also stated that the budget would allocate more funds to support Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) projects to enhance energy competitiveness.

The Chairman of the Senate Committee, Senator Yahaya Abdullahi, noted that amending the 2024 budget might be more efficient than drafting a new appropriation bill due to the high cost associated with processing it.