Home News World Bank finally approves $1.5bn loan for Nigeria

World Bank finally approves $1.5bn loan for Nigeria

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The world Bank has finally approved $1.5bn loan for Nigeria.

This is coming after the global bank threatened not to grant it until Nigeria reforms it’s forex policy to the bank’s satisfaction.

the World Bank in a statement on Tuesday said it decided to change its mind because “government revenues could fall by more than $15 billion this year, and the crisis will push an additional 5 million Nigerians into poverty in 2020.”

The two facilities that is offered to Nigeria are: an International Development Association (IDA) credit of $750 million Nigeria Covid-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES).

“This program will help increase access to social transfers and basic services, as well as provide grants to poor and vulnerable households. It will also strengthen food supply chains for poor households while facilitating recovery and enhancing capabilities of MSMEs. This is financed through” the World Bank said.

The second facility is International Development Association (IDA) credit of $750 million for State Fiscal Transparency, Accountability and Sustainability Program for Results (SFTAS).

This one  to build “on the progress made across 36 States, the original SFTAS program will be expanded and scaled up in response to COVID-19”.

“The Additional Financing will help meet the financing gap in the Programme Expenditure Framework, due to the sharp reduction in government revenues associated with the crisis”.

It will also “help increase the efficiency in spending, strengthen revenue mobilization, and enhance accountability and transparency in public resource management to further strengthen state-level COVID-19 response.