The World Bank has approved a total of $2.25 billion loan for Nigeria to help stabilise its economy following reforms and scale up support for the poor, it said in a statement on Thursday.
In April, Finance Minister Wale Edun said Nigeria was seeking up to $2.25 billion in World Bank loans and expects the bank's board to approve the request in June.
Nigeria President Bola Tinubu last year in May initiated the country's boldest reforms in decades, scrapping a popular but costly petrol subsidy and sharply devaluing the currency twice to try to kick-start growth. But the moves stoked inflation and worsened a cost of living crisis.
With the devaluation, the International Monetary Fund forecast that fuel subsidies could cost up to 3% of GDP this year as the increases in pump prices have not kept up with their dollar cost.
Labour unions also have been pressuring Tinubu to roll back reforms.
The World Bank said it approved a $1.5 billion loan to back Nigeria's reforms and another $750 million to accelerate revenue mobilisation.
It added that Nigeria has embarked on critical reforms to address economic distortions and strengthen its fiscal outlook, saying that the country has taken "initial critical steps to restore macroeconomic stability, boost revenues, and create the conditions to reignite growth and poverty reduction have been taken."
The loan will support Nigeria's effort to raise non-oil revenues and promote fiscal sustainability, which will help the West African nation deliver quality public services, the World Bank said.
Latest Stories
-
We’ll establish fiscal council to rein in excessive borrowing – Finance Minister
16 seconds -
Mortuary workers issue fresh strike threat
4 mins -
‘Lapses in banking system are not unique’ – John Awuah on managing fraud in Ghana’s Banks
12 mins -
Bawumia confident of victory in 2024 election
46 mins -
Strengthening audit institutions essential for tackling fiscal mismanagement – Domelevo
57 mins -
Healthy Aging: The Role of the Gut Microbiome and How Diet Can Help
58 mins -
Seek medical care, diagnosis for breast cancer – Dr Abiti to women
1 hour -
Hardship: Men now collect marriage list from different families to get cheapest – Report
1 hour -
‘If you’re looking for trouble, you’ll get it,’ Falz tells VeryDarkMan
1 hour -
Paramount Chief of Avenor grateful to NPP, calls for completion of Agenda 111 project
2 hours -
Bawumia commissions ultramodern office complex for Ho Municipal Assembly
2 hours -
Bawumia declares NPP’s infrastructure record unmatched
2 hours -
Importers face duty on Electric Vehicles despite gov’t’s exemption promises
2 hours -
4 additional Democracy Hub protesters discharged
2 hours -
Election 2024: Alan Kyerematen lacks a message – Hassan Ayariga
2 hours