World Bank Approves N2.25B for Nigerian Economy

World Bank Approves N2.25B for Nigerian Economy

Key Points:

  • Financial Package Approval: The World Bank approved N2.25 billion for the Nigerian economy to support reforms and assist vulnerable populations.
  • Programme Allocations: $1.5 billion for RESET Development Policy Financing, $750 million for Accelerating Resource Mobilisation Reforms.
  • Objectives: Stabilise the economy, support vulnerable populations, increase non-oil revenues, safeguard oil revenues, and promote fiscal sustainability.

On Thursday, the World Bank authorized a substantial financial package of N2.25 billion to aid Nigeria’s ongoing economic reforms and support its vulnerable citizens. This considerable funding will maintain the reform momentum, boost non-oil resource mobilization, and assist impoverished Nigerians. The approval signifies a strong commitment to stabilizing Nigeria’s economy and fostering sustainable, inclusive growth.

$1.5 Billion RESET DPF to Stabilise Nigerian Economy

The funding encompasses two primary initiatives: the RESET Development Policy Financing Programme (DPF) and the Accelerating Resource Mobilisation Reforms (ARMOR) Programme-for-Results (PforR). The RESET DPF allocated $1.5 billion to stabilize and transform the economy. Meanwhile, the ARMOR PforR, with a budget of $750 million, aims to improve resource mobilization and accelerate essential reforms. These measures create a comprehensive plan to tackle immediate and long-term economic issues.

Combined $2.25 Billion to Boost Non-Oil Revenues

The combined package aims to bring stability to the economy and support the poor and financially vulnerable. It also seeks to increase non-oil revenues and safeguard oil revenues. Moreover, it promotes fiscal sustainability and ensures the delivery of high-standard public services. These objectives are crucial for addressing Nigeria’s weak economic condition. They also address the urgent need for reform. Moreover, they set the stage for a more resilient and diversified economy.

Officials Endorse The Nigerian Economy Reform Funding

Finance Minister and Chief Coordinator of the Economy, Mr. Wale Edun, expressed appreciation for the financing approvals, emphasizing the government’s dedication to significant and necessary reforms. These reforms restore macroeconomic stability and foster sustainable and inclusive economic development.

Ousmane Diagana, the World Bank’s Vice President for Western and Central Africa, recognized Nigeria’s macro-fiscal reforms and highlighted the need to maintain reform momentum to enhance protection for poor and economically vulnerable populations.

In another statement, Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, underscored the objectives of the RESET DPF and ARMOR PforR programs, which aim to strengthen economic policy frameworks, create fiscal space, and protect the vulnerable.

IDA’s $21 Billion Annual Aid, 61% for Africa

The International Development Association (IDA), founded in 1960, is crucial in providing financial support. It is the primary aid provider for the 76 poorest nations globally, 39 of which are in Africa. IDA offers grants and loans with low or zero interest rates to enhance economic growth, alleviate poverty, and improve the lives of the impoverished. Over the past three years, IDA has committed an average of $21 billion annually, with 61% of these funds allocated to Africa. Consequently, it has driven positive change for 1.6 billion people across 113 countries.