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Mr. Wale Edu, Minister of Finance and Coordinating Minister of the Economy

Nigeria secures $2.25 Billion World Bank boost for economic reforms

Nigeria has received a significant financial boost from the World Bank, totaling $2.25 billion, aimed at stabilizing the economy and supporting vulnerable citizens.

This announcement was made by the Minister of Finance, Wale Edu, who outlined two major financial support packages in a statement.

The first package is $1.5 billion for the Nigeria Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing Programme.

The second package is $750 million for the Nigeria Accelerating Resource Mobilisation Reforms (ARMOR) Programme-for-Results.

“These funds will provide essential financial and technical support as the government continues to address economic challenges and create quality jobs and opportunities for all Nigerians,” the statement said.

Upon taking office, President Bola Ahmed Tinubu faced significant economic challenges and recognized the need for urgent reforms. Early measures included unifying multiple exchange rates and ending opaque petrol subsidy payments.

The Central Bank of Nigeria (CBN) has since focused on price stability, tightening monetary policy to combat inflation. Additionally, a targeted cash transfer program is being rolled out to support poor households affected by high inflation.

Ousmane Diagana, the World Bank Vice President for Western and Central Africa, praised Nigeria’s reforms, noting, “Nigeria’s comprehensive macro-fiscal reforms are setting the country on a new path that can stabilize the economy and lift people out of poverty.”

The RESET DPF aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the poor. 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, is providing this highly concessional funding with a 40-year term and an interest rate just over one percent.

This financial support marks a significant step in Nigeria’s efforts to stabilize its economy, promote growth, and reduce poverty. Minister Edu highlighted the positive impacts of these reforms, including increased investor confidence and a boost in foreign capital to improve foreign exchange liquidity.

Edu also acknowledged that the initial measures have led to an inflationary spike but stressed that the CBN’s actions against inflation are starting to show results. “The economy is growing, and inflation is coming down month by month,” he said, noting the challenges and progress in navigating Nigeria’s economic recovery.

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