**FG To Borrow From World Bank, China, Japan –
In Light of the current economic mishap currently facing the nation, the Federal Executive Council (FEC) on Thursday approved a new external borrowing plan for the country.
This was made known in a series of tweets by the Federal Government’s official twitter handle, @AsoRock, which noted that the loans will be provided by the World Bank, African Development Bank, China Exim Bank, and Japan International Cooperation Agency.
The new plan which is still awaiting National Assembly approval, will be directed to the Agriculture, Power, Mining and Healthcare sectors.
Nig External Borrowing Plan -low-cost, long-term loans (1.25% interest; 20yr tenor)- approved by FEC. Now awaiting @nassnigeria approval 1/
— Govt of Nigeria (@AsoRock) September 8, 2016
The (concessional) External loans will be provided by institutions like @WorldBank @AfDB_Group @jica_direct, China Exim Bank 2/
— Govt of Nigeria (@AsoRock) September 8, 2016
Apart from these loans, there will also be a FGN Eurobond offer (details in due course) /3
— Govt of Nigeria (@AsoRock) September8, 2016
The External borrowing will be directed at the following sectors:
Agriculture
Power (esp. Transmission)
Mining Development
Healthcare
/4— Govt of Nigeria (@AsoRock) September 8, 2016
Recession in Nigeria was confirmed last month, when official data showed output in the three months to the end of June fell 2.1 percent — the second successive quarter of negative growth.
That followed months of turmoil including a failing currency, rising double-digit inflation, and foreign exchange shortages that have hit business, especially imports and investment.
President Muhammadu Buhari announced a record 6.1 trillion naira ($19.4 billion) spending plan this year to try and stimulate the economy, which contracted in the first two quarters as oil revenue plunged. He said he expected the government to raise about $5 billion from the Eurobond market and multilateral and bilateral lenders.
Buhari has also blamed the economic troubles on his predecessors, saying he inherited a treasury that was “virtually empty” and that “mind-boggling” sums of public cash had been looted.
He has vowed to recover the money, prosecute corrupt officials and streamline government, cutting waste and improving efficiency, as well as diversify the economy, particularly agriculture.
Nigeria, currently trails South Africa as the continent’s biggest economy.