The Federal Government has confirmed that it had secured a budget support loan worth $1.5bn from the World Bank.

Also, the FG would get another another $80m from the African Development Bank to finance development.

It said Nigeria qualified for the “relatively cheap” loans given its “macro-economic moves” in the past couple of months since President Bola Tinubu assumed office.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, told State House Correspondents that the FG would receive $1.5bn before December.

Edun said: “Council approved today the application for financing from the World Bank. And in particular, the International Development Association, which is the virtually free or zero-interest lending arm or financing arm of the World Bank.

The total is $1.5bn. The world today is one of the high-interest rates as the developed world looks to fight inflation. They do it by restricting money, and keeping interest rates high so that you can get inflation down.

“That means that interest rates for everybody else become not just high but very painful, if not unaffordable within that context.”

He explained that, “The bold, brave, courageous and decisive measures that Mr President has taken are being rewarded by processing for Nigeria $1.5bn of immediate financing, which, provided that we do everything on our side, will be in before the end of the year.

“It is based on that the World Bank is willing to consider and to process on our behalf $1.5bn of concessional financing, relatively cheap financing and financing that will be dispersed relatively quickly.

“And it comes in one go. It doesn’t drip as will be done for a project and is just to support the reform effort. And that was what was presented to the Federal Executive Council, and the members approved that we go ahead with that financing given that it is affordable,” he added.