World Bank approves Nigeria's $2.25 billion loan request
Tweet
Share
E-mail
FILE PHOTO: The World Bank logo is seen at the 2023 Spring Meetings of the World Bank Group and the International Monetary Fund in Washington, U.S., April 13, 2023. REUTERS/Elizabeth Frantz/File Photo
By Ope Adetayo
ABUJA (Reuters) - 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.
(Reporting by Ope Adetayo; Editing by Chijioke Ohuocha and David Gregorio)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Britain scraps heavily criticised plans to curb jury trials after backlash
- France to step up Ebola funding in Congo amid resurgence fears, minister says
- Brazil's Lula, Flavio Bolsonaro wrap up campaigns ahead of first-round vote
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
