The World Bank has approved a substantial financial package totaling $2.25 billion to support Nigeria’s economic stability and assist vulnerable populations. This announcement was made on Thursday and highlights two major financial operations: the $1.5 billion Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and the $750 million Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).
The financial support is intended to provide immediate aid for Nigeria’s economic stabilization efforts, enhance non-oil revenue generation, and safeguard oil revenues, promoting fiscal sustainability and the delivery of quality public services.
In its statement, the World Bank said: “The World Bank has today approved two operations: $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 combined $2.25 billion package provides immediate financial and technical support to Nigeria’s urgent efforts to stabilize the economy and scale up support to the poor and most economically at risk.”
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, expressed optimism about the reforms in the World Bank’s statement. He said, “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. We welcome the support of the RESET and ARMOR programs as we further consolidate and implement our macro-fiscal and social protection policy reforms, consistent with accelerating investment and redirecting public resources sustainably to achieve development priorities.”
Ousmane Diagana, the World Bank Vice President for Western and Central Africa, emphasized the importance of maintaining reform momentum. He stated, “Nigeria’s concerted efforts to implement far-reaching macro-fiscal reforms place it on a new path which can stabilize its economy and lift its people out of poverty. It is critical to sustain the reform momentum and continue to scale up and expand protection to the poor and economically at risk to cushion the effects of cost-of-living pressures on citizens. This financing package reinforces the World Bank’s strong partnership with Nigeria, and our support towards reinvigorating its economy and fast-tracking poverty reduction, which can serve as a beacon for Africa.”
Earlier this year, during the World Bank/IMF Spring Meetings in Washington DC, Nigeria’s Finance Minister Wale Edun announced that the Federal Government was anticipating a $2.2 billion single-digit interest loan from the World Bank and additional budget support from the African Development Bank (AfDB). As reported by Nairametrics, the World Bank’s approval of the $2.25 billion loans, across two significant projects, was anticipated.
According to the Debt Management Office (DMO), as of December 31, 2023, Nigeria’s external debt to the World Bank stood at $15.45 billion. This new funding aims to further support Nigeria in its efforts to implement crucial economic reforms and ensure sustainable growth.
