By Gilbert Alasa.
The Federal Government of Nigeria is holding consultations with the World Bank on a possible loan to finance its budget deficit.
This is part of efforts to move away from dependence on oil for the country’s earnings.
Following speculations of emergency borrowing by some financial analysts, Finance Minister Kemi Adeosun told a medium that the federal government was not applying for “emergency loans.”
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Nigeria is believed to be shopping for an estimated $3.5bn from the World Bank and the African Development Bank.
The country’s economy currently battles a serious economic crisis following the recent fall in oil prices, and the government needs to find new sources of income to fund its budget.
Like most years, the 2015 national budget was largely financed by returns from oil sales.
Chief Africa economist for Standard Chartered bank Razia Khan told the BBC that going to the World Bank could be attractive as it may offer Nigeria better terms for a loan than it would get from the international money markets.
Nigeria is now under pressure to devalue its currency as a way to manage the negative impact of the oil price free-fall.
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