This Monday, Nigeria secured $1.5 billion in concessional financing from the World Bank’s International Development Association (IDA), according to Finance Minister Wale Edun. The announcement came after a Federal Executive Council (FEC) meeting led by President Bola Tinubu. This financial support, which comes at a time of high global interest rates, is seen as a testament to Nigeria’s prudent economic strategies amidst challenging global financial circumstances.
On the same day, the African Development Bank (AfDB) approved an $80 million scheme – the Ekiti Knowledge Zone Project (EKZ). The project is designed to promote youth engagement in Nigeria’s rapidly expanding knowledge economy and tech sector.
However, the government’s decision to borrow from the World Bank has drawn criticism from Kingsley Moghalu, ex-Deputy Governor of Nigeria’s Central Bank. Despite the Finance Minister’s confirmation at the 2023 Annual Meetings of the World Bank and IMF in Morocco that Nigeria is eligible for World Bank and concessionary IDA funding at zero interest rate, Moghalu expressed his concerns on his official page. He questioned the wisdom of borrowing such a large amount for budget support while simultaneously planning to purchase N160 million SUVs for each of the 360 House Representatives.
In response to these criticisms, Edun assured that President Tinubu’s administration would maintain a balance between fiscal and monetary policies and respect Ways and Means limits. He emphasized that Nigeria, as a developing country, is eligible for this type of funding. Despite this assurance, Moghalu painted a grim picture of Nigeria as a “carcass” being exploited by “scavenger” politicians.
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