![Secures Ten Billion Dollars in Loans from Multilateral Institutions [Detailed Information Provided]](/en/content/images/size/w1280/format/webp/20250921154739_nigeria-s-external-loans-from.jpeg)
Multilateral institutions provide Nigeria with $10 billion in loans, details available.
The Federal Government of Nigeria has been actively securing loans from various international sources over the past two years. Here's a rundown of some of the significant loans and their key details.
Power Sector Recovery
The Federal Government signed a loan agreement with the International Bank for Reconstruction and Development (World Bank) for $449 million. As of now, details about the facilities related to this loan have not been disclosed.
Digital and Creative Economy (i-DICE)
The International Development Association (IDA) arm of the World Bank approved a loan of €103.9 million for the i-DICE project. So far, only €3.9 million ($4.2 million) has been disbursed. The Islamic Development Bank also signed a facility of ISD 3.56 million for this project. The loan carries a 6.27% interest rate, a four-year moratorium, and matures on April 1, 2058.
External Loans and Disbursements
In the last two years, the Federal Government has contracted over $10 billion in external loans. However, only about $5 billion, half of the secured loans, have been disbursed so far. The loans were sourced from multilateral organisations, regional financial institutions, and the International Capital Market through Eurobonds. The exact details of the organisations providing these loans are not currently available.
FA Aircraft Purchase
The Federal Government also signed a loan agreement with UniCredit S.p.A., an Italian multinational banking group, for €425.7 million to supply six FA aircraft (Tranche A - Defence). The loan remains undisbursed and carries a 3.85% interest rate, a four-year moratorium, and matures on April 17, 2037.
Kaduna-Zaria Rail Project
The Federal Government secured €883.5 million from the China Development Bank for the Kaduna-Zaria rail project. The loan carries a 4.33% interest rate, a five-year moratorium, and matures on April 20, 2040. To date, only €245.2 million ($265 million) has been disbursed.
It's essential to note that these loans and their disbursements are part of the Federal Government's ongoing efforts to drive development in various sectors, including infrastructure, digital economy, and defence. The exact terms and conditions of some loans, such as the Power Sector Recovery Performance-Based Operations loan, have yet to be fully disclosed.
