The federal government is set to slip into heavy borrowing after Bloomberg reported yesterday that it has agreed to take external loans from the World Bank, African Development Bank, Japan International Cooperation Agency, and Export-Import Bank of China.
They will be low-cost and long-term loans with interest rates of 1.25 per cent and with 20 years to pay back. The government of President Muhammadu Buhari is simply waiting for legislative approval.
Recall that Buhari had announced a N6.1tn spending plan aimed at gingering the economy this year after it slowed down in the first two quarters due to drop in oil revenue.
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