Nigeria’s Minister of Finance, Wale Edun, has announced the World Bank’s approval of a substantial $2.25 billion loan to bolster President Tinubu’s strategic economic reforms.
This financial aid is aimed at stabilizing the Nigerian economy, fostering sustainable growth, and providing critical assistance to the nation’s impoverished and vulnerable populations.
Edun highlighted the government’s commitment to significant reforms, stating, “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,”
The finance minister had previously signaled the pursuit of this loan during the IMF and World Bank’s spring meetings in April.
World Bank Vice President for Western and Central Africa, Ousmane Diagana, commended Nigeria’s extensive macro-fiscal reforms, noting their potential to stabilize the economy and alleviate poverty.
Diagana emphasized the importance of sustaining these reforms and continuing support for those affected by the rising cost of living. “This financial support reaffirms the World Bank’s robust partnership with Nigeria, aiding in revitalizing the economy and accelerating poverty reduction, setting a precedent for the African continent,” he remarked.
The loan will facilitate two pivotal development projects: the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing, receiving $1.5 billion, and the NG Accelerating Resource Mobilization Reforms Programme-for-Results (ARMOR), allocated $750 million.
The World Bank expressed its support for Nigeria’s long-term goals to increase non-oil revenue and protect oil income, thereby promoting fiscal sustainability and ensuring the provision of quality public services.
