World Bank Approves $2.25B Loan to Support Nigeria’s Economic Reforms

The World Bank has authorized a $2.25 billion loan to Nigeria to bolster revenue and support economic reforms amid the country's worst cost-of-living crisis in years. This loan aims to protect millions facing poverty, support tax reforms, and stabilize oil revenues impacted by theft and limited production.

PTI | Abuja | Updated: 14-06-2024 18:01 IST | Created: 14-06-2024 18:01 IST
World Bank Approves $2.25B Loan to Support Nigeria’s Economic Reforms
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The World Bank has approved a substantial loan totaling USD 2.25 billion to Nigeria, aimed at shoring up revenue and driving economic reforms. These reforms come during one of the worst cost-of-living crises ever experienced by Africa's most populous nation.

A significant portion of the loan—USD 1.5 billion—will be directed towards protecting millions of Nigerians who have plunged into poverty since President Bola Tinubu's administration began implementing drastic economic fixes.

The remaining USD 750 million will focus on tax and revenue reforms and securing oil revenues hampered by chronic production issues and theft. Tinubu's economic strategies have led to soaring inflation, reaching a 28-year peak. This predicament has catalyzed protests and calls for relief from citizens and workers.

Amid these hardships, Nigeria's government has expressed its commitment to long-term economic improvements, including boosting foreign investment, which has seen a sharp decline. The Nigerian Economic Summit Group reported a drop in foreign investments by 26.7% from USD 5.3 billion in 2022 to USD 3.9 billion in 2023.

Due to a heavy debt burden, Nigeria's reliance on borrowing has drastically increased, limiting its fiscal flexibility. Despite this, the World Bank emphasized the importance of sustaining the reform momentum under Tinubu, noting that the current policies have set Nigeria on a potential path to stabilize its economy and alleviate poverty.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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