Nigeria borrows $2.25bn from World Bank

The World Bank has approved two financial support packages valued at $2.25 billion for Nigeria.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this in a statement on Thursday, June 13, 2024.

Edun, in a statement issued by the ministry’s spokesperson, Mohammed Manga, said the loan approval was part of President Bola Tinubu’s ongoing efforts to stabilise the economy, reposition it for sustained and inclusive growth, and provide urgent support to the poor and vulnerable.

He listed the approved loans to include $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and $750 million for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).

“The combined total of $2.25 billion will provide essential financial and technical support as the government continues to address economic distortions,” Manga noted.

He said the support package will assist Nigeria in its long-term goal of increasing non-oil revenues and securing oil revenues to ensure fiscal sustainability and the delivery of quality public services.

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The ministry’s spokesman said ‘RESET’ aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the poor and vulnerable, adding that ‘Armor PforR’ supports tax and excise reforms, improves tax revenue and customs administration, and safeguards oil revenues.

He, however, quoted Edun as saying: “We have undertaken bold and necessary reforms to restore macroeconomic stability and put Nigeria on a path to sustainable and inclusive economic growth,” he said.

“These reforms will create quality jobs and economic opportunities for all Nigerians.

“We welcome the support of the RESET and ARMOR programs as we further consolidate and implement our policy reforms, consistent with accelerating investment and using public resources more sustainably to achieve our development goals.”

Also speaking on the approval, the World Bank Vice-President for Western and Central Africa, Ousmane Diagana, commended Nigeria’s efforts in reforming the financial sector. 

Diagana said” “Nigeria’s comprehensive macro-fiscal reforms are placing the country on a new path that can stabilise the economy and lift people out of poverty.

“It is essential to maintain the momentum of these reforms and continue to provide support to the poor and vulnerable to mitigate the impact of the cost-of-living crisis.”

The Star