The federal government has approved plans for external borrowing from the World Bank, China and Japan.
The debt will come from institutions including the World Bank, African Development Bank, Japan International Cooperation Agency and Export-Import Bank of China, the presidency commented on Twitter.
It states that focus will be on “low-cost, long-term” loans with interest rates of 1.25 percent and maturities of 20 years. Details of a Eurobond will be announced “in due course.” However, the federal government is waiting for lawmakers to approve the plans, the presidency said.
President Muhammadu Buhari announced a record of 6.1 trillion naira ($19.4 billion) spending plan this year to try and stimulate the economy, which contracted in the first two quarters as oil revenue crashed. He said he expected the government to raise about $5 billion from the Eurobond market and multilateral and bilateral lenders.