Recession: AfDB To Borrow FG $4.1 Billion



By Ibrahim Umar

Adewunmi Adesina, president of the African Development Bank (AfDB), said a total of $4.1 billion would be lent to Nigeria over 2016 and 2017, cumulating to $10 billion by 2019.

"I expect that our portfolio in Nigeria will not decrease -- it will actually grow. We expect to invest in Nigeria, by 2019, a total of $10 billion," he said.

The monies, Adesina said, is meant to develop power and agriculture sectors of the Nigerian economy.

Adesina also said he would go to the pan-African lender's board next month to seek approval for a first $1 billion loan to cover this year's deficit in Nigeria’s budget. The budget support facility, according to Nigeria’s finance minister Kemi Adeosun, would be concessional and has an interest rate of 1.2 percent.

Nigeria has slipped into recession due to dwindling oil earnings, leaving it with a funding gap of its N6.06 trillion naira 2016 budget.

Source: Reuters

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