Nigeria has increased its shares with the International Bank of Reconstruction and Development, IBRD.
Minister of Finance, Budget and National Planning, Zainab Ahmed made this known to the State House Correspondents soon after Wednesday’s cabinet meeting chaired by the Vice President, Professor Yemi Osinbajo.
Ahmed said the move would help the country consolidate its position in the financial front globally as well as project Nigeria’s image as an emerging market.
“We presented a memo to the Federal Executive Council. The memo is on additional capital increase for Nigeria at the international bank of Reconstruction and Development. Prior to now, Nigeria holds 16,187 shares at the IBRB.
“During the last meeting of the World Bank Group, a capital increase was adopted in October 2016 and an additional allocation of 3,230 shares was allocated to Nigeria, both for general capital increase as well as selected capital increase. The total value of these shares is in the sum of $50, 637,747.60 Million. This additional subscription to the Bretton Woods institution by Nigeria is not just desirable but necessary,” she stated.
Ahmed said the move would boost Nigeria’s image globally as well as encourage foreign investments.
“It will strengthen the country’s position and enhance our voice in the global financial architecture,” she said.
The Finance Minister also announced that the World Bank now rates Nigeria as a middle-class income country, following Nigeria’s improved Gross Domestic Product, GDP.
“It is important that we also reported to council that Nigeria is now classified by the World Bank as a middle-class income country by reason of its GDP of over $387b and a per capital income today or as at the end of 2018 of $1,960 per head.
Ahmed said; “This makes Nigeria qualify for a Bretton status in the World Bank group that -gives a country the leverage and enables us to access some less restricted resources of the bank both at the IBRB as well as the either windows.”
”Subscription to these shares will enhance the future of the status of Nigeria as a middle-income country as well project the image of the country as strong emerging market. We are required to at the end of March 2019 to have accepted this offer. We have done the acceptance; we went to council today to get an approval to submit a memorandum of law to complete the documentation of the subscription process and council approved our prayers,” she added.