The loan is expected to provide crucial support to Nigeria's economic recovery efforts amidst ongoing challenges
The World Bank has approved a $2.25 billion loan for Nigeria to aid in stabilising its economy amid reforms and enhance support for the impoverished.
Nigeria's Finance Minister, Wale Edun, disclosed this on Thursday.
Earlier in April, Mr Edun disclosed that the nation qualified to process and secure a $2.25 billion loan from the World Bank.
The loan is expected to provide crucial support to Nigeria's economic recovery efforts amidst ongoing challenges.
According to a statement by the spokesperson of the Ministry of Finance, Mohammed Manga, the approved operations include $1.5 billion for the Nigeria Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing Programme (DPF) and $750 million for the Nigeria Accelerating Resource Mobilisation Reforms (ARMOR) Programme-for-Results (PforR).
This combined total of $2.25 billion will offer essential financial and technical support as the government continues to address economic distortions.
The statement said the funds will assist Nigeria in its long-term goal of increasing non-oil revenues and securing oil revenues to ensure fiscal sustainability and the delivery of quality public services.
Mr Edun welcomed the support of the World Bank and emphasised the necessity for the reforms.
"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.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"We welcome the support of the RESET and ARMOR programmes as we further consolidate and implement our policy reforms, consistent with accelerating investment and using public resources more sustainably to achieve our development goals," he said.
He stated that the 'RESET' initiative is designed to enhance Nigeria's economic policy framework, create fiscal space, and safeguard the poor and vulnerable. While the 'ARMOR PforR' programme supports tax and excise reforms, improves tax revenue and customs administration, and protects oil revenues.
Ousmane Diagana, the World Bank vice president for Western and Central Africa, commended Nigeria's efforts in repositioning its economy.
"Nigeria's comprehensive macro-fiscal reforms are placing the country on a new path that can stabilise the economy and lift people out of poverty," Mr 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."
