The World Bank has approved a $2.25 billion loan to support Nigeria’s economic reform efforts and stabilize the economy. The loan is divided into two parts: $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and $750 million for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).
This financing package aims to provide immediate financial and technical support to Nigeria’s efforts to stabilize the economy, scale up support to the poor and most economically vulnerable, and promote fiscal sustainability. The loan will support the government’s economic reform agenda, which includes unifying exchange rates, adjusting gasoline prices, and implementing a targeted cash transfer program to cushion the impact of high inflation on the poor.
According to Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, “We have embarked on bold and necessary reforms to restore macroeconomic stability and put the country back on a sustainable and inclusive economic growth path that will create quality jobs and economic opportunities for all Nigerians.”
The World Bank Vice President for Western and Central Africa, Ousmane Diagana, added, “Nigeria’s concerted efforts to implement far-reaching macro-fiscal reforms place it on a new path that can stabilize its economy and lift its people out of poverty. We are committed to supporting Nigeria’s reform efforts and scaling up support to the poor and economically vulnerable.”
