World Bank Approves ₦3trn Loan For Nigeria’s ‘Economic Reforms’

Mayowa DurosinmiJune 14, 20241 Mins read116

World Bank Approves ₦3trn Loan for Nigeria's 'Economic Reforms'

The World Bank has approved a $2.25 billion (₦3.36 trillion) loan for Nigeria to support its economic reforms and enhance support for the impoverished.

On Thursday, Wale Edun, the Minister of Finance, said the loan is expected to support Nigeria’s economic recovery from ongoing inflation and naira devaluation.

However, the loan came months after Mr Edun disclosed in April that Nigeria qualified to process and secure a $2.25 billion loan from the World Bank.

According to a statement by the spokesperson of the Ministry of Finance, Mohammed Manga, the approved operations include $1.5 billion (₦1.8 trillion) for the Nigeria Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing Programme (DPF) and $750 million for the Nigeria Accelerating Resource Mobilisation Reforms (ARMOR) Programme-for-Results (PforR).

On the other hand, the World Bank said it has approved a $1.5 billion loan to back Nigeria’s reforms and another $750 million to accelerate revenue mobilisation.

Nigeria has embarked on critical reforms to address economic distortions and strengthen its fiscal outlook, particularly the initial critical steps to restore macroeconomic stability, boost revenues, and create the conditions to reignite growth and poverty reduction,” the World Bank added.

This followed the removal of the fuel subsidy in May last year and the naira devaluation, which caused more inflation and worsened the cost of living crisis.

Edun further stated that these reforms will create quality jobs and economic opportunities for all Nigerians.

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