World Bank Approves $2.25b Loan For Nigeria At 1% Interest Rate
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He detailed that the loan offers favorable terms, including a 40-year term, a 10-year moratorium, and a one percent interest rate.
Edun emphasized the importance of this financial injection, stating, “There is no such thing as a free lunch but it is the closest you can get to free money. It is virtually a grant.” He highlighted the significance of the loan in supporting Nigeria’s economic development and recovery efforts.
Addressing the need to increase government revenue, Edun outlined plans to improve the tax-to-GDP ratio from about 10 percent to 18 percent within a few years.
He stated the government’s aim to ramp up overall government revenue from about 12 percent to approximately 22 percent, essentially doubling it.
To achieve these ambitious targets, Edun highlighted the efforts of the tax reform and fiscal reform committee, which is tasked with rolling out measures to enhance efficiency in the tax sector and boost revenue generation.
