The Financial Times is standing by its report that “Nigeria has asked the World Bank and African Development Bank for $3.5bn in emergency loans to fill a growing gap in its budget in the latest sign of the economic damage being wrought on oil-rich nations by tumbling crude prices.”
The publication claims it spoke to Nigeria’s Finance Minister Kemi Adeosun and she confirmed that the loans were not an “emergency” measure but rather the “cheapest way possible” to fund a “deficit budget”.
Adeosun has now come out to deny the report.
The minister, in a statement by her Special Adviser on Media Matters, Festus Akanbi, said “Nigeria had not applied for any emergency loan.”
According to the Statement
“The truth is that Nigeria, as part of the plans to fund the 2016 budget currently undergoing the approval process of the National Assembly, has indicated an intention to borrow N1.8trillion principally for investment in capital projects to stimulate the economy… The option of the World Bank is to ensure an optimum financing structure, noting that 2016 budget is part of the Medium-term economic framework of the Federal government, which the World Bank is aware of. The proposed budget deficit will be funded equally through external and domestic sources. Nigeria is exploring the options of multi-lateral agencies like the World Bank and AFDB and export credit agencies such as China Exim Bank due to their concessionary interest rates.”
In summary, it seems a though a loan has been discussed, however, the formal process is still in progress.