Finance Minister Wale Edun Initiates Talks with World Bank for $1.5 Billion Funding
In a pivotal move to address the critical dollar shortage affecting Nigeria, Finance Minister Wale Edun has disclosed that the country is currently engaged in discussions with the World Bank to secure up to $1.5 billion in funding.
The primary objective is to alleviate the severe strain on the national budget exacerbated by the Naira’s significant depreciation.
Strategic Move Amid Naira’s Decline
During an insightful Bloomberg Television interview with Francine Lacqua on Wednesday, Minister Edun emphasized the urgency of the situation, stating that the funding sought from the World Bank—ranging between $1 billion to $1.5 billion—aims to counteract the adverse effects of the relentless decline in the value of the Naira.
He expressed optimism about the success of these negotiations, citing the ongoing commitment to structural reforms.
Naira Records Steep Decline in Forex Market
As the talks unfold, the Naira experienced a substantial depreciation against the US Dollar in the foreign exchange market.
According to data from FMDQ, the Naira plummeted to N931.23 per US dollar on Wednesday, marking a noteworthy N52.72 loss or a 6% decrease compared to its closing value of N878.57 on the previous day.
Addressing the Immediate Currency Challenge
The Finance Minister stressed the pressing need for external support to alleviate the severe dollar shortage, which has contributed to the Naira’s decline.
The proposed funding from the World Bank is seen as a crucial lifeline that could play a pivotal role in stabilizing the national budget and mitigating the economic challenges triggered by the currency’s decline.
Optimism Amid Reforms
Minister Edun conveyed confidence in securing the much-needed financial assistance from the World Bank, citing the country’s dedication to ongoing structural reforms.
The outcome of these talks holds significant implications for Nigeria’s economic recovery and its ability to navigate the complexities of the current forex crisis.Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn