The World Bank has approved $2.25 billion in financial support for Nigeria, as announced today by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
The support package comprises two major operations: the $1.5 billion Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program and the $750 million Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results.
These funds are intended to bolster Nigeria’s efforts in stabilizing its economy, addressing economic distortions, and repositioning for sustained and inclusive growth. A key focus is on increasing non-oil revenues and securing oil revenues to ensure fiscal sustainability and the delivery of quality public services.
Upon taking office, the Tinubu administration faced substantial economic challenges, prompting urgent reforms to correct imbalances and strengthen Nigeria’s financial outlook. Initial steps have been taken to restore macroeconomic stability, boost revenues, and create conditions for renewed growth and poverty reduction.
Minister Edun welcomed the World Bank’s support, stating, “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.”
The World Bank’s Vice President for Western and Central Africa, Ousmane Diagana, praised Nigeria’s efforts, saying: “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. 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. This financing package strengthens the World Bank’s strong partnership with Nigeria and supports efforts to rejuvenate the economy and expedite poverty reduction, serving as an example for Africa.”
The RESET program aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the poor and vulnerable.
Meanwhile, the ARMOR program supports tax and excise reforms, improves tax revenue and customs administration, and safeguards oil revenues.
