The World Bank granted a loan of $800 million as a subsidy palliative, and the next administration, led by Major General Muhammadu Buhari (retired), will start repaying the debt. Before June 2023, the Federal Government had obtained $800 million from the World Bank to offer over 50 million Nigerians with post-petroleum subsidy palliatives.
The project’s goals are to strengthen Nigeria’s national safety net delivery system through June 30, 2024, and to increase coverage of shock-responsive safety net support among the poor and vulnerable.
The loan was disclosed to be concessional financing in the document dated August 16, 2022 and signed by the Nigerian finance minister and Shubham Chaudhuri, the country director for Nigeria at the World Bank.
The $800 million loan that the Federal Reserve got attracts a maximum commitment charge rate of one-half of one per cent per annum on the Unwithdrawn Financing Balance, and a service charge of three-fourths of one per cent per annum on the withdrawn credit balance, according to the document.
It also disclosed that the interest charge is one and a quarter per cent per annum on the withdrawn credit balance. The repayment will be made in installments, with the first payment due on January 15, 2027, and the last payment due on July 15, 2051.