ABN - Recession-riddled Nigeria is hoping to borrow at least US$1 billion from the World Bank and will offer a number of economic reform proposals to the lender this month.
While the exact figure for the loan has not been specified by the government, the West African oil producer hopes a deal can be agreed to plug a budget deficit of around $7 billion.
Nigeria has previously had loan applications knocked back by the Washington-based lender and the African Development Bank (AfDB), as it failed to submit the necessary economic reform programmes to either banks.
It is believed that Nigeria’s reluctance to apply a more flexible foreign exchange rate policy and other macroeconomic reforms has hampered talks to gain loans from foreign agencies.
However, with the government planning to present its economic reforms proposals to the World Bank and the AfDB by the end of February, officials are hopeful that a loan can be secured to help stimulate the struggling economy.