World Bank okays $2.25bn loan to aid Tinubu’s economic reforms

The World Bank has approved two significant financial support packages, as announced by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, on Thursday.

Edun stated that this is a part of President Bola Tinubu’s ongoing initiatives to stabilise the economy, reposition it for sustained and inclusive growth, and provide urgent assistance to the poor and vulnerable.

In a statement, Mohammed Manga, Director, Information and Public Relations said “the approved operations include $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and $750 million for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).”

He stated that “This combined total of $2.25 billion will offer essential financial and technical support as the government continues to address economic distortions.

“Additionally, it will assist Nigeria in its long-term goal of increasing non-oil revenues and securing oil revenues to ensure fiscal sustainability and the delivery of quality public services.”

Upon assuming office, the Federal Government was confronted with significant economic challenges, and recognized the need for urgent reforms to correct the economic imbalance and strengthen Nigeria’s financial outlook.

Initial critical steps have been taken to restore macroeconomic stability, boost revenues, and create the conditions necessary to reignite growth and reduce poverty.

These ongoing measures are part of a broader strategy to increase revenues, create jobs, and foster sustainable economic growth.

He said Mr. Wale Edun has welcomed the support of the World Bank and emphasized the necessity for the reforms:
“We have undertaken bold and necessary reforms to restore macroeconomic stability and put Nigeria on a path to sustainable and inclusive economic growth.

“These reforms will create quality jobs and economic opportunities for all Nigerians. We welcome the support of the RESET and ARMOR programmes as we further consolidate and implement our policy reforms, consistent with accelerating investment and using public resources more sustainably to achieve our development goals”.

Ousmane Diagana, the World Bank Vice President for Western and Central Africa, praised Nigeria’s efforts: “Nigeria’s comprehensive macro-fiscal reforms are placing the country on a new path that can stabilize the economy and lift people out of poverty. It is essential to maintain the momentum of these reforms and continue to provide support to the poor and vulnerable to mitigate the impact of the cost-of-living crisis.

“This financing package strengthens the World Bank’s strong partnership with Nigeria and supports efforts to rejuvenate the economy and expedite poverty reduction, serving as an example for Africa”.

Manga said, “Focus areas of the programmes include RESET DPF, which aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the poor and vulnerable, and ARMOR PforR, which supports tax and excise reforms, improves tax revenue and customs administration, and safeguards oil revenues.”