June 14, (THEWILL) – The World Bank has approved a total of $2.25 billion loan for Nigeria to help provide immediate financial and technical support to the country’s efforts to stabilise its economy and increase support for the poor and most economically at risk.
In a statement on Thursday, the World Bank explained that the $2.25 billion loan package consists of $1.5 billion for the “Nigeria Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing Program (DPF) and $750 million for the Nigeria Accelerating Resource Mobilisation Reforms (ARMOR) Program-for-Results (PforR).”
It also added that the loan supports “Nigeria’s ambitious, multi-year effort to raise non-oil revenues and safeguard oil revenues to promote fiscal sustainability and provide sufficient resources to deliver quality public services.”
THEWILL recalls that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had in April said Nigeria was seeking up to $2.25 billion in World Bank loans and expects the bank’s board to approve the request in June.
In his reaction to the loan approval, Edun said: “We have embarked on bold and necessary reforms to restore macroeconomic stability and put the country back on a sustainable and inclusive economic growth path that will create quality jobs and economic opportunities for all Nigerians.
“We welcome the support of the RESET and ARMOR programmed as we further consolidate and implement our macro-fiscal and social protection policy reforms, consistent with accelerating investment and redirecting public resources sustainably to achieve development priorities.”
Also commenting, Ousmane Diagana, the World Bank Vice President for Western and Central Africa, said: “Nigeria’s concerted efforts to implement far-reaching macro-fiscal reforms place it on a new path which can stabilise its economy and lift its people out of poverty. It is critical to sustain the reform momentum and continue to scale up and expand protection to the poor and economically at risk to cushion the effects of cost-of-living pressures on citizens.
“This financing package reinforces the World Bank’s strong partnership with Nigeria, and our support towards reinvigorating its economy and fast-tracking poverty reduction, which can serve as a beacon for Africa.
“The RESET DPF is focused on supporting Nigeria to strengthen its economic policy framework by creating fiscal space and protecting the poor and economically insecure.
“The ARMOR PforR will support efforts to implement tax and excise reforms, strengthen tax revenue and customs administrations, and safeguard oil revenues.”
