Nigeria gets approval for $2.25 billion loan from World Bank – Edun

Nigeria has received approval for two major “financial support packages” from the World Bank totaling $2.25 billion, said Wale Edun, Minister of Finance and Coordinating Minister for the Economy.

The development was announced in a statement by Mohammed Manga, the ministry’s director of information and public relations.

He noted that this is part of President Tinubu’s ongoing efforts to stabilize the economy, reposition it for sustainable and inclusive growth, and provide urgent support to the poor and vulnerable.

“The approved operations include $1.5 billion for the Development Policy Financing (DPF) Program for Nigerian Economic Stabilization Reforms to Enabling Transformation (RESET) and $750 million for the Program-for-Results (PforR) Accelerating Nigerian Resource Mobilization Reforms,” the statement read .

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

Additionally, Manga said this support package will help Nigeria achieve its long-term goals of increasing non-oil revenues and securing oil revenues to ensure fiscal sustainability and the provision of quality public services.

He said ‘RESET’ aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the poor and vulnerable.

The statement also noted that ‘PforR Armor’ supports tax and excise reform, increases tax revenues and customs administration, and safeguards oil revenues.

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Responding to this agreement, Edun welcomed the World Bank’s support.

“We have undertaken bold and necessary reforms to restore macroeconomic stability and put Nigeria on a path to sustainable and inclusive economic growth.

“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 policy reforms, consistent with accelerating investment and using public resources more sustainably to achieve our development goals,” said Edun.

Meanwhile, Ousmane Diagana, World Bank vice president for West and Central Africa, praised the country’s efforts to reform the financial sector.

“Nigeria’s comprehensive macro-fiscal reforms put the country on a new path that can stabilize the economy and lift people out of poverty.

“It is important to maintain the momentum of this reform and continue to provide support to poor and vulnerable communities to mitigate the impact of the cost of living crisis,” said Diagana.

The World Bank vice president said this financing package will strengthen the World Bank’s strong partnership with Nigeria and support efforts to rejuvenate the economy and accelerate poverty reduction, thereby setting an example for Africa.

By: Babajide Okeowo

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