Technical, financial assistance to Nigeria worth $15bn – W’Bank

The World Bank has stated that its technical advisory and financing to support economic growth in Nigeria currently stands at over US$15bn.

This was as the bank disclosed that it has invested in sectors including reliable power and clean energy, girls’ education and women’s economic empowerment, climate adaptation and resilience, water and sanitation, and governance reforms.

This development came against the backdrop of a new loan approval worth $2.25bn aimed at bolstering Nigeria’s economic stability and supporting its vulnerable populations.

The combined package comprises the $1.5bn Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing Program and the $750m Nigeria Accelerating Resource Mobilization Reforms Program-for-Results.

It is to enhance the country’s non-oil revenue generation and safeguard oil revenues, thereby promoting fiscal sustainability and enabling the delivery of quality public services.

In a feature story posted on its website on Friday titled, “Turning The Corner: Nigeria’s Ongoing Path of Economic Reforms”, the international lender stated that the nation had turned the corner on reforms that would require all the right partnerships and support to achieve the long-term goal of a prosperous economy where jobs are created, and human development is significantly improved.

The bank added that the support could serve as an example for the region on how macro-fiscal and governance reforms along with continued investments in public goods can accelerate growth and improve the lives of citizens.

The report read, “Since May 2023, Nigeria has embarked on far-reaching and long-overdue reforms aimed at stabilizing the economy and setting the country towards the growth path.

“The Central Bank of Nigeria unified the multiple official exchange rates, fostered a market-determined official rate, cleared the verified foreign exchange backlog, and tightened monetary policy. As a result of the reforms, the supply of foreign exchange has improved, which is good for businesses, consumers, and economic growth.

It continued, “The previous, large gap between the official and parallel market exchange rates has also been eliminated, improving transparency and putting a stop to corrupt practices and “round-tripping.

“The government also sharply adjusted gasoline prices to begin to phase out the gasoline subsidy, which had cost the country over N8.6tn (US$22.2bn) from 2019 to 2022 with empirical evidence showing it did not benefit the poor but rather benefitted relatively better off consumers and resulted in large-scale black market and out-smuggling.”

It further said, “As Nigeria pushes forward to attain economic prosperity, the country will need sustained efforts to deliver key public goods for its citizens.

“The World Bank is supporting Nigeria to achieve this with both technical advisory and financing, which stands at over US$15bn in sectors that include reliable power and clean energy, girls’ education and women’s economic empowerment, climate adaptation and resilience, water and sanitation, and governance reforms.”