It Is Left for Incoming Govt to Decide on Accepting $800m Loan, Clarifies World Bank
WORLD BANK PRESIDENT
The World Bank has said that the $800 million loan facility it offered to Nigeria is left for the incoming government to decide to accept it or reject it.
The Bank offered the loan to the federal government as part of the palliatives to cushion the effect of oil subsidy removal from the month of June.
There has been controversy surrounding the loan at a time the present administration is about handing over to a new administration.
In an interview granted to THISDAY Newspaper, the Country Director of the World Bank in Nigeria, Mr. Shubham Chaudhuri, explained that the decision to draw down the facility rests with the incoming government.
Part of the interview published by THISDAY reads, “The outgoing government is saying look, ’we have this facility waiting, you (incoming government) don’t have to go through the process of getting National Assembly approval.’ If this had not gone to the National Assembly, the new government would have to wait for approval from our board which takes at least six months.
“So, the decision to draw down the facility rests with the incoming government. If it decides not to, it can be cancelled. Also, the National Assembly approving it does not mean the incoming government must draw it down.
“The only time this will translate to actual debt for Nigeria is only when it is drawn down and that decision rests with the incoming government.”
The Bank offered the loan to the federal government as part of the palliatives to cushion the effect of oil subsidy removal from the month of June.
There has been controversy surrounding the loan at a time the present administration is about handing over to a new administration.
In an interview granted to THISDAY Newspaper, the Country Director of the World Bank in Nigeria, Mr. Shubham Chaudhuri, explained that the decision to draw down the facility rests with the incoming government.
Part of the interview published by THISDAY reads, “The outgoing government is saying look, ’we have this facility waiting, you (incoming government) don’t have to go through the process of getting National Assembly approval.’ If this had not gone to the National Assembly, the new government would have to wait for approval from our board which takes at least six months.
“So, the decision to draw down the facility rests with the incoming government. If it decides not to, it can be cancelled. Also, the National Assembly approving it does not mean the incoming government must draw it down.
“The only time this will translate to actual debt for Nigeria is only when it is drawn down and that decision rests with the incoming government.”
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