World Bank Approves $1.5bn Loan For Nigeria

The World Bank Board of Directors has approved a $1.5bn loan for Nigeria, the lender said in a statement on Tuesday.

The loan according to the World Bank is a five-year Country Partnership Framework that would span between 2021 to 2024.

The approval was made in favour of Nigeria COVID-19 Action Recovery and Economic Stimulus Program for Results and the State Fiscal Transparency, Accountability and Sustainability Program for Results Additional Financing.

The World Bank Country Director for Nigeria, Shubham Chaudhuri said, “This country partnership framework will guide our engagement for the next five years in supporting the government of Nigeria’s strategic priorities by taking a phased and adaptive approach.

“To realize its long-term potential, the country has to make tangible progress on key challenges and pursue some bold reforms. Our engagement will focus on supporting Nigeria’s efforts to reduce poverty and promote sustained private sector-led growth.”

The bank said the facility under the CPF would help to accelerate investing in human capital by increasing access to basic education, quality water and sanitation services;  women’s empowerment and youth employment and skills.

The lender said the facility would also promote creation of jobs and economic transformation and diversification by supporting measures to unlock private investment and job creation and increasing access to reliable and sustainable power for households and firms.

“The CPF will also focus on boosting digital infrastructure, and developing economic corridors and smart cities, to provide Nigerians with improved livelihoods,” the bank said.

The CPF according to the World Bank would enhance resilience by strengthening service delivery and livelihood opportunities in the Northeast and other regions grappling with insecurity, as well as modernizing agriculture and building climate resilience.

Reacting to the development,  Kevin Njiraini, IFC Director for Southern Africa and Nigeria said, “A strong private sector is critical to support Nigeria’s economic growth and development. The Country Partnership Framework leverages the World Bank Group to enable business growth that is inclusive and sustainable.

“IFC will continue to support a broader private sector-led growth strategy to help Nigeria realize its immense potential by attracting more investment and creating millions of quality jobs for its growing population.”

The Minister of Finance, Zainab Shamsuna Ahmed, had said on April 6, that Nigeria requested the sum of $6.9bn from multilateral lenders to cushion the effects of Nigeria’s fall in revenues.

The approval would help Africa’s largest economy to mitigate the impact of the virus, according to the minister.