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As concerns for multiple exchange rate in Nigeria linger, the country is now less likely to get the proposed $1.5 billion loan from the World Bank in August Reuters Africa said.
The loan was supposed to be forwarded for approval to the World Bank board this August. However, it has been reported that Nigeria is failing to meet the negotiation terms.
Sources from the government who talked to Reuter said that “The World Bank is not convinced about the reforms,” citing the currency as the core issue.
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Having said that Nigeria is headed for an economic disaster, the World Bank also loans money pegged to certain requirements. The CBN governor indulged the World Bank when it pledged to unify the exchange rates. This led to the devaluation of the naira twice this year.
That, however, isn’t enough to convince the World Bank according to Reuters who wants full reform of the naira policy. The sources also cite insufficient transparency in the elimination of fuel subsidies as one of the reasons the World Bank hasn’t approved the proposed $1.5 billion loan to Nigeria. Reuters said that a banking source mentioned that loan could wait until October.
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