Nigeria gets $2.25 billion World Bank loan
World Bank in a statement Thursday said it has approved a total of $2.25 billion loan for Nigeria to help stabilise its economy following reforms and scale up support for vulnerable Nigerians.
Recall in April, Wale Edun the Finance Minister said Nigeria was seeking for $2.25 billion loan from the World Bank and had expected the bank’s board to approve the request in June.
The World Bank said it approved a $1.5 billion loan to back Nigeria’s reforms and another $750 million to accelerate revenue mobilisation.
Nigeria’s has critical reforms to address economic distortions and strengthen its fiscal outlook according to the global financial institution is an “initial critical steps to restore macroeconomic stability, boost revenues, and create the conditions to reignite growth and poverty reduction have been taken.”
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.
Nigeria President Bola Tinubu last year in May 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 a cost of living crisis.
The International Monetary Fund forecast that with the devaluation, 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.
Labour unions also have been pressuring Tinubu to roll back reforms and clamouring for N250, 000 minimum wage for workers to cope with the high cost of transportation, food and others.
