The World Bank has approved two financing facilities totaling $2.25 billion for Nigeria, aimed at bolstering the Federal Government’s initiatives to stabilize the economy.
In a statement titled “Supporting Nigeria’s Homegrown Reforms: New World Bank Financing for Inclusive Growth and Revenue Diversification,” the World Bank disclosed the approval.
According to the statement, the financing includes $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF), and $750 million for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).
“This combined $2.25 billion package provides immediate financial and technical support to Nigeria’s urgent efforts to stabilize the economy and scale up support to the poor and most economically at risk,” the statement read.
The funding is intended to support Nigeria’s ambitious reforms aimed at increasing non-oil revenues and securing oil revenues to enhance fiscal sustainability.
These reforms are crucial for delivering quality public services and fostering economic growth and poverty reduction.
In response to Nigeria’s economic challenges, the government has undertaken significant steps such as unifying official exchange rates, adjusting gasoline prices, and refocusing the Central Bank of Nigeria (CBN) on price stability through monetary tightening.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, emphasized the necessity of these reforms to restore macroeconomic stability and pave the way for sustainable and inclusive economic growth.
World Bank Vice President for Western and Central Africa, Ousmane Diagana, underscored the importance of these programs in consolidating macro-fiscal reforms and expanding social protection measures to mitigate the impact of economic pressures on vulnerable populations.
“This financing package underscores the World Bank’s commitment to supporting Nigeria in revitalizing its economy and accelerating poverty reduction, which could set a positive example for Africa,” Diagana remarked.
The RESET DPF will focus on enhancing Nigeria’s economic policy framework to create fiscal space and protect vulnerable groups, while the ARMOR PforR aims to bolster tax and excise reforms, strengthen revenue administration, and safeguard oil revenues.
This collaboration between Nigeria and the World Bank signifies a robust partnership aimed at steering the country towards economic stability and sustainable development.
