FRI JUNE 14 2024-theGBJournal|The World Bank has approved two major financial support packages for Nigeria, totaling $2.25 billion.
The funds will support Nigeria’s efforts to stabilize the economy and provide urgent support to the poor and vulnerable, Finance Minister, Wale Edun, said on Thursday.
The approved funding include $1.5 billion for the Federal Government’s Reforms for Economic (RESET) Stabilization to Enable Transformation Development Policy Financing Program (DPF) and $750 million for the country’s Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).
According to Edun, ”the funds will offer essential financial and technical support as the government continues to address economic distortions.”
”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.”
RESET DPF aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the poor and vulnerable while the ARMOR PforR will support tax and excise reforms, improve tax revenue and customs administration, and safeguard oil revenues.
Edun noted that the Federal Government was confronted with significant economic challenges since the onset of the President Bola Tinubu’s administration, and it recognized the need for urgent reforms to correct the economic imbalance and strengthen Nigeria’s financial outlook.
He said 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 adds.
Ousmane Diagana, the World Bank Vice President for Western and Central Africa, while commenting on the financial packages praised Nigeria’s efforts.
He said 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.”
According to Diagana; ”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.”
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