The World Bank has granted a $2.25 billion boost to President Bola Tinubu’s measures aimed at economic stabilization and aiding vulnerable citizens.
Speaking on Thursday night, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed two significant financial support packages.
According to the Nation, they include $1.5 billion for the Nigeria Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing Programme (DPF) and $750 million for the Nigeria Accelerating Resource Mobilisation 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.”
At the inception of the present administration, government implemented a unification of multiple exchange rates and the cessation of opaque subsidy payments on petrol as initial measures implemented to rescue the economy.
The Central Bank of Nigeria (CBN) has refocused on its core mandate of price stability, tightening monetary policy by increasing interest rates to reduce inflation.
A targeted cash transfer program is being implemented to help poor and economically insecure households cope with high inflation.
The World Bank Vice President for Western and Central Africa, Ousmane Diagana, hailed Nigeria’s efforts, stating: “Nigeria’s comprehensive macro-fiscal reforms are placing the country on a new path that can stabilise 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 programmes focus on RESET DPF, designed to strengthen the economic policy framework, create fiscal space, and protect the poor and vulnerable.
The ARMOR P-for-R backs tax and excise reforms, enhances tax revenue and customs administration, and protects oil revenues.
The International Development Association (IDA), the World Bank’s fund for the poorest countries, offers highly concessional funding with a 40-year term and an interest rate of just over one percent.
IDA resources contribute to enhancing economic growth, alleviating poverty, and enhancing livelihoods in the 76 poorest countries globally, with 39 of them located in Africa.
The approval of these financial packages represents a significant milestone in Nigeria’s efforts to stabilize its economy and establish a sustainable path for growth and poverty reduction.