The Federal Government is in talks with the African Development Bank (AfDB) for a $1 billion dollar loan to help cover its 2016 budget deficit, the finance minister of finance said on Monday.
The loan would be concessional with an interest rate of 1.2 percent, Kemi Adeosun told reporters following a meeting with AfDB head Akinwumi Adesina.
Nigeria has suffered budget constraints following a drop in oil price and renewed militancy in the Niger Delta region, which have put pressure on government finances. The minister had earlier hinted that the Federal Government is looking to sell some of the nation’s assets to fund the 2016 budget.
The 2016 budget was laid before a joint session of the National Assembly on December 22, 2015. It was however accented to by the president in May. A joint session of the national assembly unanimously approved the budget estimates of N6.06 trillion from the initial N6.08 trillion.
According to the finance minister, there were plans to partially sell the Nigerian Liquefied and Natural Gas Limited; government’s shares in upstream oil joint venture operations; stake in financial institutions including: Africa Finance Corporation as well as privatisation and concession of major/regional airports and refineries.
The minister disclosed that all of these assets are still under consideration and none has been pinpointed as being available for sale.
