Nigeria gets relief amid lockdown as World Bank suspends loan repayment

Date:

Share post:

Nigeria which has received $11.5 billion credit from the World Bank so far this year is among several countries asked to withhold debt payments to reduce the burden of ongoing global economic lockdown on the government. The announced was made mid-week. Burkina Faso, Benin, Ivory Coast, Ghana, Benin Republic and others have received similar relief.

Since January 2020 the World Bank, through the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD), has disbursed significant amount of loans to African countries to help offset infrastructure decay especially. Repaying or financing those credits is going to drag the debtors economy as well as dent the lifestyle of the citizens as the COVID-19 takes its toll on the continent.

No doubt, the announcement will delight the government in Nigeria. Lower price of oil and necessary economic lockdown have already put the Buhari-led administration in a tight position to fully implement the fiscal plan for year 2020.

While debt refinancing forms almost 40% or a quarter of the budget, delay in repayment means the government will redeploy freed fund to stimulate other sectors, such as the SME ecosystem, to strengthen business development on a large scale locally.

Toyin Afilaka
Toyin Afilaka
Toyin Afilaka writes with simplicity and insight. He aims to enrich the Nigerian small business landscape. Through Hustle24 he connects entrepreneurs with information about new policies, enterprise solutions and opportunities that will aid their 'hustle'. He has written extensively for CobraReview, a product review portal, and served as a lead project manager for MarketingMix where he consulted as PR consultant for MTN Project Fame and Business Next Titan etc.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Related articles

4 strategies from Bezos that would change your business

Success sometimes can grow to become a craft that leaves behind trails for others to follow. Jeff Bezos...

How to cultivate a purposeful culture

Sarah Turner, the founder and chief executive officer of an eponymous agency, provides interesting insights into how to...

20 Types Of Content To Help You Attract Prospects And Win Customers – Renae Gregoire

If you know deep inside that you need to be doing more to connect regularly with your audience...

High prospect for real estate investment in Nigeria – Bartholomew Egbochie, CEO, ATCO Homes

Lagos, Oct 4, 2023 - The Nigeria real estate sector provides ample investment opportunities. According Bartholomew Egbochie, the...