The World Bank has approved a total of $2.25 billion in loans for Nigeria to help stabilise its economy, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced on Thursday.
In a statement by the ministry, it stated that the financial package from the World Bank is aimed at putting Nigeria on a path to sustainable and inclusive economic growth.
In April, Finance Minister Wale Edun said Nigeria was seeking up to $2.25 billion in World Bank loans and expects the bank’s board to approve the request in June.
“We have undertaken bold and necessary reforms to restore macroeconomic stability and put Nigeria on a path to sustainable and inclusive economic growth.
“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,” Persecondnews quotes Edun as saying.
Persecondnews recalls that Nigerian President Bola Tinubu, in May 2023, initiated the country’s boldest reforms in decades, scrapping a popular but costly petrol subsidy and sharply devaluing the currency twice to try to kick-start growth. But the moves stoked inflation and worsened the cost of living crisis.
With the devaluation, the International Monetary Fund forecast that fuel subsidies could cost up to 3% of GDP this year as the increases in pump prices have not kept up with their dollar cost.
The World Bank said it approved a $1.5 billion loan to back Nigeria’s reforms and another $750 million to accelerate revenue mobilisation.
The loan will support Nigeria’s effort to raise non-oil revenues and promote fiscal sustainability, which will help the West African nation deliver quality public services, the World Bank said.
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