The presidency on Thursday said it had approved
an external borrowing plan after the cash-
strapped African economy plunged into official
recession.
“Low cost, long-term loans (1.25% interest, 20yr
tenor)” would be sought from the World Bank,
African Development Bank, China’s Exim Bank
and the Japan International Cooperation Agency,
it announced.

A Eurobond would also be offered “in due
course” and parliament has still to sign off on the
plan, President Muhammadu Buhari’s office
added in a series of tweets.
Recession in Nigeria was confirmed last month,
when official data showed output in the three
months to the end of June fell 2.1 percent — the
second successive quarter of negative growth.
That followed months of turmoil including a
failing currency, rising double-digit inflation, and
foreign exchange shortages that have hit
business, especially imports and investment.
The decline has laid bare OPEC-member Nigeria’s
over-reliance on oil revenue and the lack of
economic diversity, after global oil prices began
free falling from mid-2014.

Nigeria’s government is dependent on oil export
sales for 70 percent of its revenue. Militant
attacks on facilities in the Niger delta have
compounded the effects of the worldwide slump
in crude prices.
Buhari has also blamed the economic troubles on
his predecessors, saying he inherited a treasury
that was “virtually empty” and that “mind-
boggling” sums of public cash had been looted.
He has vowed to recover the money, prosecute
corrupt officials and streamline government,
cutting waste and improving efficiency, as well as
diversify the economy, particularly agriculture.
The government said the external loans would be
used mainly in the agriculture, power, mining
development and healthcare sectors.
A record 6.1-trillion-naira ($19.4-billion) spending
plan was announced in this year’s federal budget
to try to stimulate growth.


International Monetary Fund managing director
Christine Lagarde visited Nigeria in January but
said at the time that no programme was needed.