[BREAKING] World Bank finally approves $1.5bn loan for Nigeria
After a few months of delay, the World Bank Group announced on Tuesday that it had approved a $1.5-billion package to help Nigeria build a resilient recovery post-COVID19.
The multilateral financial institution said it discussed a new five-year Country Partnership Framework from 2021 to 2024.
“Nigeria is at a critical juncture. With the sharp fall in oil prices as a result of COVID-19, the economy is projected to contract by over four percent in 2020, plunging the country into its deepest recession since the 1980s,” it said.
The bank said government revenues could fall by more than 15 billion dollars this year, and the crisis would push an additional five million Nigerians into poverty in 2020.
“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,” said Shubham Chaudhuri, World Bank Country Director for Nigeria.
He added, “To realise 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.”
Reuters, in an August 17 report, quoted sources as saying that the World Bank was unlikely to approve a much-needed $1.5 billion for Nigeria in August as planned due to concerns over desired reforms.
It said the World Bank had aimed to bring the loan to its board for approval last month, but the sources said negotiations over what Nigeria would do to secure it were incomplete.
