Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has announced that the World Bank has approved two major financial support packages for Nigeria, totalling $2.25 billion.
This announcement was made in a statement on Thursday, as part of President Tinubu’s efforts to stabilize and grow the economy, while providing urgent support to the poor and vulnerable.
The statement, signed by Mohammed Manga, the Ministry’s Director of Information and Public Relations, detailed the approved packages. “The approved operations include $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),” the statement reads.
“The combined total of $2.25 billion will provide essential financial and technical support as the government continues to address economic distortions,” it added.
Manga explained that the support package will assist Nigeria in its long-term goals of increasing non-oil revenues and securing oil revenues, ensuring fiscal sustainability, and delivering quality public services. He noted that ‘RESET’ aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the poor and vulnerable.
Meanwhile, ‘ARMOR PforR’ supports tax and excise reforms, improves tax revenue and customs administration, and safeguards oil revenues.
Commenting on the approval, Edun welcomed the World Bank’s support, saying, “We have undertaken bold and necessary reforms to restore macroeconomic stability and put Nigeria on a path to sustainable and inclusive economic growth. These reforms 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 policy reforms, consistent with accelerating investment and using public resources more sustainably to achieve our development goals.”
Ousmane Diagana, the World Bank Vice-President for Western and Central Africa, praised Nigeria’s efforts in reforming its financial sector. “Nigeria’s comprehensive macro-fiscal reforms are placing the country on a new path that can stabilize the economy and lift people out of poverty,” Diagana said. “It is essential to maintain the momentum of these reforms and continue to provide support to the poor and vulnerable to mitigate the impact of the cost-of-living crisis.”
Diagana added that the financing package will strengthen the World Bank’s partnership with Nigeria, support efforts to rejuvenate the economy, and expedite poverty reduction, serving as an example for Africa.
