FG borrowing $1.5bn from World Bank to buy N160m SUV each for 360 rep members - Moghalu alleges

Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has said that the Nigerian government is seeking a $1.5 billion World Bank loan to allegedly squander on SUVs for members of the House of Representatives.

According to Moghalu, about 360 members of the House of Representatives will get an SUV worth N160 million each.

The economist and former presidential aspirant revealed that anyone can drive any car of their choice but at their own cost.

Moghalu, who described the move as a waste, said that Nigeria should make government officials drive made-in-Nigeria vehicles.

“There is a real problem when Nigeria is set to borrow another $1.5 billion from @WorldBank for budget support, and SUVs worth N160 million each are reportedly to be bought for 360 members of the House of Representatives. We are not yet serious as a country.”

“Nigeria is becoming a carcass, and our political class its scavengers,” Moghalu stated.

Legit.ng reported that the Federal government is seeking a $1.5 billion budget support loan from the World Bank.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Saturday, October 14, 2023, during a press conference at the ongoing World Bank/IMF Annual meeting in Marrakesh, Morocco.

Edun and President Bola Tinubu insisted a few months ago that the Nigerian government will do less borrowing and focus on internal sources for revenue mobilization to fund the budget and other economic growth agenda.

Edun revealed in Morocco that the $1.5 billion World Bank loan would come with a Zero interest rate.

According to the Debt Management Office, Nigeria’s public debt has hit N87 trillion since June 30, 2023.

The International Monetary Fund (IMF) has said Nigeria and other countries in Sub-Saharan Africa need to work hard to shore up their revenues and rule out a blanket debt cancellation for the countries.

IMF’s Director of Africa Department, Abebe Selassie, said Nigeria is not in debt distress but might have challenges raising revenue to service its debt.

Edun said the new World Bank loan would fund development, stating that the facility would be disbursed to Nigeria soon.

He said: “On the talks with the World Bank on $1.5bn budget support, that is correct. The World Bank is the number one multilateral development bank helping developing countries or funding developing countries’ projects.

Edun said Nigeria is still servicing its debt and is not qualified to seek debt forgiveness, stating that Zambia is restructuring its debt under the IMF programme called Common Framework, within which creditor countries come together and agree on the basis on which to help a nation that cannot pay its debt.

Edun promised Tinubu’s government would not borrow excessively, especially from the Central Bank of Nigeria (CBN).

The International Monetary Fund (IMF) earlier ruled out blanket debt cancellations for Nigeria and other African countries.

The fund revealed that the countries must tweak their economic policies and raise revenues to meet their debt-servicing obligations.