The World Bank approved $2.25 billion loan on Thursday for Nigeria to maintain its reform momentum, increase non-oil revenue, and support poor citizens.
The Bank announced that $1.5 billion will support the country’s Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing Programme (DPF), and $750 million for the Accelerating Resource Mobilisation Reforms (ARMOR) Programme-for-Results (PforR).
The World Bank said the combined package aims to provide immediate financial and technical backing to the country’s ambitious efforts to stabilise the economy as the reforms are being implemented and the scaling up of non-oil revenues whilst providing relief for the many impacted.
The Bank noted the bold steps the government has taken critical steps to restore macroeconomic stability, including unifying the multiple official exchange rates and adjusting energy prices to eliminate the regressive and expensive petrol subsidy.
It also admitted that the Central Bank of Nigeria (CBN) had refocused on its core mandate of price stability and was tightening monetary policy by increasing interest rates, as appropriate to combat inflation.
Finance Minister Mr. Wale Edun, welcomed the $2.25 billion intervention and stressed said the government will follow through with its bold and necessary reforms to restore macroeconomic stability and economic growth that will create jobs and opportunities for all Nigerians.
Edun said, “We welcome the support of the RESET and ARMOR programme 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.”
World Bank Vice President for Western and Central Africa, Ousmane Diagana, emphasised that the government needed to continue on the path it has embarked on as it continues offer palliatives to the poor and economically at risk to cushion the effects of the reforms.
He said, “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.”