The Nigerian government is poised to secure a substantial loan from the World Bank, with approval anticipated for loans totaling $2.25bn on June 13, 2024.
Recall that Minister of Finance, Wale Edun revealed during the spring meetings of the International Monetary Fund and the World Bank last month that Nigeria had qualified for processing a loan of $2.25bn from the World Bank at a nominal interest rate of one percent, effectively termed as ‘virtually a grant.’
The funding comprises two main development projects. The first, Nigeria Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing, is slated to receive $1.5bn. The second project, NG Accelerating Resource Mobilisation Reforms Programme-for-Results, is proposed to receive $750m.
These projects aim to enhance Nigeria’s economic stability and resource mobilisation capabilities. The funds are expected to support reforms in economic policies and government resource mobilisation, vital for the country’s long-term financial sustainability and economic resilience.
The primary objective of the NG Accelerating Resource Mobilisation Reforms Programme-for-Results is to boost non-oil revenues and safeguard oil and gas revenues, focusing on tax, excise, and administrative reforms.
Technical assistance will be provided to strengthen tax and customs administrations, enhancing compliance and effectiveness.
Similarly, the Nigeria Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing aims to increase fiscal oil revenues, boost non-oil fiscal revenues, expand social safety nets, and raise the import value of previously banned products.
Nigeria’s commitment to implementing significant reforms towards economic stabilisation and recovery priorities continues, aiming to enhance revenue generation, social welfare, and economic growth.
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