World Bank Approves Nigeria’s $1.5bn Loan Request
The World Bank has approved Nigeria’s request to borrow $1.5 billion, Shubham Chaudhuri, the Bank’s country director for Nigeria said in a statement released on Tuesday, Dec. 15.
The Bank had initially delayed the loan and demanded that Nigeria carries out more currency reform before it could access the loan.
The loan is said to be a five-year country partnership framework (CPF) which is expected to last from 2021 to 2024. According to the Bank, the loan was prepared jointly with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
Chaudhuri said, “this country partnership framework will guide our engagement for the next five years in supporting the government of Nigeria’s strategic priorities by taking a phased and adaptive approach,” Chaudhuri said.
“To realize its long-term potential, the country has to make tangible progress on key challenges and pursue some bold reforms. Our engagement will focus on supporting Nigeria’s efforts to reduce poverty and promote sustained private sector-led growth.”
On how the loan will be disbursed, the Bank said it will be channeled into four areas – human capital, economic transformation and diversification, promotion of jobs, enhancing resilience and strengthening the foundations of the public sector.
The board of directors of the Bank also approved $1.5 billion for two projects in Nigeria, namely Nigeria COVID-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES) and The State Fiscal Transparency, Accountability and Sustainability Program for Results (SFTAS) Additional Financing.
The sum of $750 million loan has been earmarked for each project, through the International Development Association (IDA).
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