FG Suspends $22.7B Foreign Loan – Minister Reveals

FG Suspends Loan

Federal Government of Nigeria has on Monday, March 16 announced the suspension of its move to take a loan from foreign countries, 9jatoday understands.

In a statement made available by the Minister of Finance, Mrs Zainab Ahmed, the $22.7 billion external loan the Federal Government of Nigeria is hoping to borrow has been halted due to current economic challenges been faced in the country.

Speaking at the 2020 International Conference on the Nigerian Commodities Market in Abuja on Monday, Zainab noted that the federal government would put a stop to the borrowing programme, adding that even if it gets approval from the senates, it will be stopped.

She further noted that the new development was taken due to the current market indices which do not support external borrowings at the moment.

She said, “The parliament is still doing its work on the borrowing plan. One arm of the parliament has completed theirs and the other arm is still working and it is a process that is controlled by the parliament itself, so we are waiting.”

“However, we are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get approvals we will defer it and watch the market and go out only when the timing is right.” Recall that against protests from Nigerians and the opposition PDP, the Nigerian senate two weeks ago, gave approval for the FG to borrow $ 22.7B in loans. The loans would have been used to shore up Nigeria’s infrastructure according to the FG.”

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