JUST-IN: Federal Gov’t Secures $2.25bn World Bank Support For Economic Reforms

The Federal Government has secured $2.25 billion in financial support from the World Bank to bolster ongoing economic reforms aimed at stabilising the economy and fostering inclusive growth.

This was disclosed late Thursday by the director of press in the ministry of finance, Manga Mohammed.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, confirmed the approval of two significant financial support packages by the World Bank to the President Bola Tinubu-led government. The initiatives were part of President Tinubu’s broader efforts to stabilise the economy, position it for sustained growth, and provide urgent support to the poor and vulnerable, he 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). This combined total of $2.25 billion will provide essential financial and technical support as the government continues to address economic distortions.

Additionally, the support 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 urgent need for reforms to address economic imbalances 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.

The measures were part of a broader strategy to increase revenues, create jobs, and foster sustainable economic growth. Edun emphasised the importance of these reforms.

He said the government has 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 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 statement quoted him as saying.

World Bank Vice President for Western and Central Africa, Ousmane Diagana, praised Nigeria’s efforts, saying: “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.”

The programmes were designed to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the poor and vulnerable. The statement also highlighted that the support will assist in tax and excise reforms, improving tax revenue and customs administration, and safeguarding oil revenues.

This substantial financial backing from the World Bank is expected to reinforce Nigeria’s efforts in implementing critical reforms aimed at economic stabilization and growth, ultimately benefiting all Nigerians.