President Bola Tinubu’s efforts at stabilizing the economy and scaling up support for the most vulnerable citizens have received a $2.25 billion World Bank boost. Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, broke the news of two major financial support packages in a statement last night.
They include $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Programme (DPF) and $750 million for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Programme-for-Results (P-for-R). The statement reads: “This combined total of $2.25 billion will offer essential financial and technical support as the government continues to address economic distortions.
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, hailed Nigeria’s efforts, stating: “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 focus areas of the programmes are RESET DPF, designed to strengthen the economic policy framework, create fiscal space and protect the poor and vulnerable. The ARMOR P-for-R supports tax and excise reforms, improves tax revenue and customs administration, and safeguards oil revenues.
The International Development Association (IDA), the World Bank’s fund for the poorest countries, provides highly concessional funding with a 40-year term and an interest rate of just over one per cent. IDA resources help boost economic growth, reduce poverty, and improve lives in the world’s 76 poorest countries, 39 of which are in Africa.
The approval of these financial packages marks a significant step in Nigeria’s efforts to stabilize its economy and create a sustainable path for growth and poverty reduction.
