Former CBN deputy gov expresses disapproval of govt’s $1.5bn W’Bank borrowing proposal

Former Deputy Governor of the Central Bank of Nigeria, Kingsley Moghalu, has expressed his opposition to the federal government’s plan to borrow $1.5 billion from the World Bank.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed the loan during the 2023 Annual Meetings of the World Bank and the International Monetary Fund (IMF) in Marrakech, Morocco.

Edun assured that there would be coordination between monetary and fiscal policies and pledged that President Bola Tinubu’s administration would not exceed the Ways and Means limits.

“On the talks with the World Bank on $1.5 billion budget support, that is correct.

“The World Bank is the number one multilateral development bank helping developing countries or funding developing countries, projects and programmes, and sectors.

“It has free money through either International Development Association (IDA).

“It is for the poorer countries and right now I think we qualify as one of the countries that can borrow in the normal window of World Bank funding but also some concessionary IDA funding and that means that effectively the interest rate will be zero,” Edun stated.

Reacting, Moghalu on his X official page said Nigeria is becoming a carcass, “and our political class its scavengers.”

“There is a real problem when Nigeria is set to borrow another $1.5 billion from @WorldBank for budget support, and SUVs worth N160 million each are reportedly to be bought for 360 members of the House of Representatives. We are not yet serious as a country.

“Nigeria is becoming a carcass, and our political class its scavengers,” he wrote.