World Bank approves new $2.25 billion aid for Nigeria | The Guardian Nigeria News

World Bank approves new $2.25 billion aid for Nigeria | Headline News


The World Bank announced it would approve $2.25 billion in financial and technical assistance to Nigeria.

The facility has two components: $1.5 billion for Nigeria’s Reform Enabling Transformation through Economic Stabilization (RESET) Development Policy Financing Program (DPF) and $750 million for Nigeria’s Accelerating Resource Mobilization and Reform (ARMOR) Program for Pursuing Results (PforR).

At the time of writing, details of the support were still unknown.

A statement from the bank said the package will provide immediate financial and technical support to Nigeria’s urgent efforts to stabilize the country’s economy and expand assistance to the poor and most economically vulnerable.

The plan will also support Nigeria’s ambitious multi-year effort to increase non-oil revenues and protect oil revenues to promote fiscal sustainability and provide adequate resources to deliver quality public services, the statement said.

Faced with a precarious economic situation, Nigeria, under President Bola Tinubu, recognized the urgency of changing course and embarked on significant reforms to address economic distortions and strengthen the country's fiscal outlook.

First significant steps have been taken to restore macroeconomic stability and create conditions to reignite growth and poverty reduction while increasing revenues.

Initiatives include harmonizing multiple official exchange rates and promoting market-determined official rates, as well as adjusting fuel prices and phasing out costly, regressive and opaque gasoline subsidies.

The Central Bank of Nigeria (CBN) also said it was refocusing on its core mandate of price stability and was tightening monetary policy, including raising interest rates, as appropriate to contain inflation.

Targeted cash transfer programs have been launched to cushion the impact of high inflation on poor and economically vulnerable households.

“We have embarked on bold and necessary reforms to restore macroeconomic stability and put the country back on track for sustainable and inclusive economic growth that creates quality jobs and economic opportunities for all Nigerians,” said Nigeria's Minister of Finance and Coordinating Minister for the Economy, Wale Edun.

“Nigeria's concerted efforts to implement far-reaching macro-fiscal reforms are setting it on a new path to stabilize its economy and lift its people out of poverty. To cushion the impact of cost of living pressures on its people, it is critical to maintain the momentum of reforms and continue to extend and expand protections for the poor and economically at-risk,” Ousmane Diagana, World Bank vice president for West and Central Africa, said in a statement.

“This financing package reinforces the World Bank's strong partnership with Nigeria and our support to revitalize the country's economy and speed up poverty reduction, and can serve as a beacon for Africa,” he added.

RESET DPF is focused on helping to strengthen Nigeria’s economic policy framework by creating fiscal space and protecting the poor and economically insecure, while ARMOR PforR will support efforts towards implementing tax and excise reforms, strengthening revenue and customs administration, and safeguarding oil revenues.

Source: guardian.ng

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