The Federal Executive Council has approved a memo on additional capital increase of 3,230 shares for Nigeria at the International Bank of Reconstruction and Development (IBRD).
The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, who disclosed this on Wednesday, said Nigeria held 16,187 shares at the IBRD prior to this period.
She noted that the IBRD is the largest development bank in the world owned by 189 member countries, adding that the total value of the shares owned by Nigeria in the bank was in the sum of $50.6 million dollars.
The minister said the additional subscription by Nigeria was not just desirable but also necessary to strengthen the country’s position and enhance its voice in the global financial architecture.
She said the bank supports the World Bank Group’s mission by providing loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries, as well as by coordinating responses to regional and global challenges.
“It is important also that we reported to council that Nigeria now classified by the World Bank as middle income country by reason of its GDP of over $397billion dollars and a per capita income of $1,960 dollars per head at the end of 2018.
“This makes Nigeria qualified for a blend status in the World Bank that gives a country leverage and enables us to access some less restricted resources of the bank both at the IBRD as well as at the IDA windows.
“Subscription to these shares will enhance the future status of Nigeria as a middle income country as well as project the image of the country as a strong emerging market.
“We are required to by March, 2019 to have accepted this offer and we have since done the acceptance and we went to council today to get the council’s approval to submit a memorandum of law to complete the documentation of the subscription process and council approved our prayers,’’ she added.
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