The World Bank Group has approved a $1.5billion loan for Nigeria.
According to a statement issued by the World Bank headquarters in Washington DC, on Tuesday, the package, which comes under the Country Partnership Framework (CPF), is “to help build a resilient recovery post-COVID19.”
The statement added that the package, which was prepared jointly with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), “proposes a collaborative approach of how resources across the entire Bank Group can best support the government’s effort to achieve its goal to lift 100 million citizens out of poverty.”
Commenting on the facility, World Bank Country Director for Nigeria, Shubham Chaudhuri, said: “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.”
He added: “To realize 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.”
Kevin Njiraini, IFC Director for Southern Africa and Nigeria, while commenting on the package said, “A strong private sector is critical to support Nigeria’s economic growth and development. The Country Partnership Framework leverages the World Bank Group to enable business growth that is inclusive and sustainable. IFC will continue to support a broader private sector-led growth strategy to help Nigeria realise its immense potential by attracting more investment and creating millions of quality jobs for its growing population.”
In her comment on the facility, Merli Baroudi, Director at MIGA for Economics and Sustainability, said, “To achieve sustainable post-COVID economic recovery, the country needs to strengthen reforms that support private sector solutions and crowd in private sector finance. In close coordination with the World Bank and IFC, MIGA will continue to expand its support for cross-border private investment into Nigeria.”
According to the statement, the CPF would focus on four areas of engagement which are investing in human capital by increasing access to basic education, quality water and sanitation services; promoting jobs and economic transformation and diversification by supporting measures to unlock private investment and job creation and increasing access to reliable and sustainable power for households and firms; enhancing resilience by strengthening service delivery and livelihood opportunities in the Northeast and other regions grappling with insecurity, as well as modernizing agriculture and building climate resilience; and strengthening the foundations of the public sector by improving public financial management and strengthening the social contract between citizens and government through improved fiscal and debt management.
Nigeria secures fresh $1.5bn loan from World Bank