AfDB To Grant Nigeria $10 Bln Facilities To Build Roads Despite World Bank Reservations
Despite the accusation by the World Bank that the continental financial institution was compounding Nigeria’s debt burden, the African Development Bank (AfDB) said it will extend fresh $10 billion facilities to the country to build some roads.
Last week, the world bank had attributed the worsening debt burden being experienced by Nigeria and South Africa to the poor lending policy of Africa Development Bank (AfDB).
David Malpass, president of the World Bank said three financial institutions lend too quickly to heavily indebted countries and in the process helping worsen already-challenging debt situations.
He said the Asian Development Bank was “pushing billions of dollars” into a fiscally challenging situation in Pakistan while the AfDB was doing the same in Nigeria and South Africa.
But the AfDB despite the criticism said it will provide Nigeria with $10 billion for roads and other infrastructural development projects.
A Transport Specialist/Consultant to the AfDB, Abayomi Babalola, disclosed this on Thursday at a meeting with officials of the Federal Roads Maintenance Agency in Abuja.
Babalola said the AfDB would assist FERMA with a loan facility to address funding gaps in the agency’s operations.
He said the $10bn loan would be disbursed to different sectors of the economy spread over a period of 10 years.
Nigeria’s total debt stock stood at N26.21 trillion naira as of September 2019, with the external component stood at $26.94 billion.
The country is planning to raise fresh $3.3 billion in Eurobond before the of the first quarter as part of measures to fund the revenue gap in the 2020 budget.
President Mohammadu Buhari has sent the request to the Senate for approval to raise the amount from the International Capital Market (ICM), but the parliament is yet to attend to the request.