Recession-hit Nigeria plans to borrow at least $1 billion from the World Bank and also plans to present this month the financial institution the economic reform proposals it required, officials and diplomats told Reuters.

For a year now, the West African nation has been negotiating with the bank to secure a loan to plug the budget deficit of $7 billion for 2016 and fund essential infrastructural projects. However, the process was hindered by the failure of FG to submit its economic recovery plans by December-ending as agreed.

While a senior government official said Nigeria would borrow a loan of $1 billion from the World Bank, another said it could seek as much as $2 billion. The Federal Government, on the other hand, is yet to state the exact amount it will borrow, only indicating it intends to raise $5 billion abroad. It is also unclear when it plans to present its proposed reforms to the institution.

According to a World Bank’s spokeswoman, the economic proposals would be the “basis on which the World Bank will determine with the government the most appropriate lending instrument to support the implementation of the reform plan.”

Meanwhile, the African Development Bank (AfDB) is delaying $400 million, which is the second tranche of a $1 billion loan, on account of the reform plan. In this regard, Nigeria is to submit its economic proposals to the AfDB and World Bank at the same time, the government officials added.

Anita Fatunji