FG Abandons $22.7bn Loan As Coronavirus Disrupts Plans

• FG Abandons $22.7bn Loan As Coronavirus Disrupts Plans

The Federal Government has abandoned its plan to borrow $22.7 billion external loan amid fast-spreading coronavirus and rising global uncertainty.

The Minister of Finance, Mrs Zainab Ahmed, who spoke at the 2020 International Conference on the Nigerian Commodities Market organised by the Securities and Exchange Commission (SEC), said the government would no longer go ahead with the $22.7 billion loan even if the National Assembly approved it.

She said, “The parliament is still doing its work on the borrowing plan. One arm of the parliament has completed theirs and the other arm is still working and it is a process that is controlled by the parliament itself, so we are waiting.

“However, we are not going out immediately because the market indication is not in favour of external borrowing at this time. Even if we get approvals we will defer it and watch the market and go out only when the timing is right.”

The minister, however, said the Federal Government is not relenting on its commitment to diversify the economy to better broaden revenue generation against the unstable global oil market.

She said, “Several national plans, programmes and projects have been directed at diversifying the production and revenue structures of our economy.

“While some levels of achievements have been recorded in this area, more still needs to be done to ensure that our production and exports base become more robust, less vulnerable to external shocks and provide more opportunities to our teeming population.”