A delay in financing from multilateral lenders could leave Africa’s biggest economy and top oil producer, battered by low crude prices, unable to fully finance a record 10.8 trillion naira ($28.35 billion) budget.

The central bank has said Nigeria’s balance of payments gap this year will be $14 billion.

The World Bank, which has said Nigeria could be heading toward its greatest fiscal crisis in 40 years, had aimed to bring the loan to its board for approval this month, but the sources said negotiations over what Nigeria will do to secure it were incomplete.

“They are not convinced about the reforms,” a source close to the government said. All three sources declined to be named due to the sensitivity of the negotiations. The source added that the currency was the core issue.

World Bank loans are often contingent upon reforms. It has not outlined any demands, but said previously that it was “recommending” a more unified, flexible exchange rate. Fuel subsidies and electricity tariffs are also being discussed.

Another banking source said the loan could now not be approved until October.

Nigeria’s finance ministry directed queries to the World Bank. In a statement, the lender said discussions were at an advanced stage, but confirmed that it had not presented the loan to its board.

“Of particular importance are the steps the government is taking to marshal the needed fiscal resources for a pro-poor response to the crisis and undertake the reforms that will help ensure a robust recovery,” the statement said.

Nigeria’s policy of supporting the naira has become more costly since the oil price slide, as it relies on oil for 90% of its foreign exchange. It has devalued the naira twice this year, but the sources said that was not enough for the World Bank, which wanted fuller reform of the naira policy.

Nigeria also said it had eliminated fuel subsidies through a “floating” price cap, but two of the sources said the World Bank felt the mechanism was not sufficiently transparent.


https://www.dateline.ng/world-bank-delays-nigerias-1-5bn-loan-over-reforms/

Hmmm

lending to nigeria is like lending to an slowpoke....he/she will spend it on candys.

What is the essence of Loans that were stolen.

Loan and loot directly ,

The roots of our problems were those miserable lots who carried out that January 1966 coup. Because of them, we had to abandon a system of governance that was working. Every region was developing through their own resources and Nigeria was on it way to greatness before those miserable hot headed criminals threw spanner in the works.


Today, Nigeria is as good as the oil prices at the international market, prices we cannon control. Going back to regionalism is almost impossible. We are basically stuck in this oil mess for until God knows when.



I AM DONE TALKING

Nigeria reforms are always trapped with corruption. If reforms cannot resurrect and survive in our current decay system, the funds will find its way to the pocket of our corrupt leaders..

Constitutional and restructional reforms are what we should address as an unified nations. If not, forget about the funds. Lets secede instead.