The World Bank is yet to consider the approval of the federal government’s $2.25 billion loan application, which the government said would provide crucial support to Nigeria’s economic recovery efforts amidst ongoing fiscal deficit and supply chain challenges.
Minister of finance and coordinating minister of the economy Wale Edun made the disclosure in a statement that was issued by the director of information in his ministry, Mohammed Manga.
However, the finance ministry said the ministry is working closely with the World Bank on the loan application for up to $2.25 billion, comprising $1.5 billion in development Policy financing and $750 million in Programme-for-Results Financing, raising hope that the facility could be approved for disbursement in June.
“We expect that the Board of the World Bank will meet in June 2024 to consider the final approval of this financing package,” Mr Edun said. He had described the facility as “virtually a grant” with about 40 years, 10 years moratorium and about one per cent interest. The government brags that it will also serve as a flow of dollars into the nation’s foreign reserves.
The minister said the government’s commitment to economic stability remains unwavering, while highlighting key initiatives of the government that are aimed at bolstering Nigeria’s economy. He said the government’s focus on agriculture, manufacturing, and electricity aims not only to stabilise prices but also to secure food and reduce dependency on imports. “These initiatives, coupled with the inflation targeting policies of the Central Bank, are expected to reduce inflation by the second half of the year, which would allow for a potential reduction in interest rates,” he stated.
The minister also stated that significant efforts are being made in the housing sector to support the rapid development of sustainable value chains, expected to have a catalytic effect on the economy and make housing more accessible.
Regarding the National Social Investment Programme (NSIP), Edun said the recent review and improvement of its financial architecture to enhance targeted delivery and efficiency, with direct transfers having recommenced, providing critical support to vulnerable populations.
He reaffirmed the administration’s commitment to ensuring the Naira’s position as a strong store of value and mentioned ongoing dialogues with the organised private sector to learn how policy can best support their growth and sustainability.
Speaking at the recently concluded World Bank and IMF Spring Meetings, Edun said with the ongoing adjustments and the resilient and resourceful spirit of Nigerians, the government is confident of a brighter, more prosperous future for all Nigerians.
Permanent secretary of the Federal Ministry of Finance, Mrs. Lydia Shehu Jafiya reportedly affirmed the ministry’s commitment to facilitating the rapid implementation of government policies. “We are dedicated to aligning our actions with the administration’s policy thrust, ensuring that initiatives are effectively executed and achieve their goals,” stated Jafiya.
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