Plans by the Federal Government to borrow billions of dollars from the World Bank to plug its budget deficit have run into delays as the international lender is demanding for further reforms from the government as a condition for any loan.
This is coming barely one month after the Presidency gave the Ministry of Finance its seal of approval to obtain the loan.
People briefed on the talks said the Ministry of Finance was now facing calls from the International Monetary Fund and World Bank to push through further reforms on the economy.
These discussions, they said, had held up any agreement on a loan from the bank.
They added that the World Bank had said it would not be able to disburse any loans until 2017 at the earliest because it has not yet received the macroeconomic framework needed for the discussions to progress, though the finance ministry disputes that.
The Minister of Finance, Mrs. Kemi Adeosun, had in April said that Nigeria planned to secure external financing for a budget shortfall now estimated at N1.8tn by the end of the third quarter.
European Union, Head of Trade and Economics Section Fillippo Amato has advised the Federal Government to devalue the Naira as part of measures to tackle the economic recession.