The World Bank has disbursed $751.88 million to Nigeria from a recently approved $1.5 billion loan.
According to Persecondnews, the financial intervention is a RESET programme aimed at boosting revenues, expanding social safety nets, and liberalizing imports.
Conditions include VAT reforms and executive orders. The World Bank is to monitor Nigeria’s compliance with agreed reforms.
This loan project is part of the broader $2.25 billion approved by the World Bank for Nigeria on June 13, 2024, to boost reforms in the country.
The $1.5 billion loan comprises two separate agreements between Nigeria and the World Bank: an International Development Association (IDA) credit of $750 million and an International Bank for Reconstruction and Development (IBRD) loan of $750 million.
The disbursed amount comprises the full $750 million from the IDA loan and $1.88 million from the World Bank’s IBRD, leaving an undisbursed balance of $748.13 million.
According to findings by Persecondnews, the RESET programme focuses on four main objectives: increasing oil revenues, boosting non-oil fiscal revenues, expanding social safety nets, and liberalizing imports.
These goals are designed to address Nigeria’s pressing economic challenges and promote sustainable growth.
To access the full loan amount, Nigeria must meet specific conditions, including implementing a presidential executive order on fiscal transfers, reforming the value-added tax system, and revising the National Social Investment Programme Bill.
The government has already progressed in some areas, such as adjusting gasoline prices and initiating cash transfer programmes.
As Nigeria moves forward with these reforms, the World Bank will closely monitor the country’s compliance with the agreed-upon conditions.
This loan represents not just a financial boost but also a commitment to significant structural changes in Nigeria’s economy, potentially shaping its fiscal policies and social programmes for years to come.
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