The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Thursday, revealed the approval of two major financial support packages by the World Bank for Nigeria.
A statement signed by the Director, Information and Public Relations in the ministry, Mohammed Manga, says the approved operations consist of $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF), and $750 million for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).
The statement says, “Upon assuming office, the Federal Government was confronted with significant economic challenges, and recognized the need for urgent reforms to correct the economic imbalance and strengthen Nigeria’s financial outlook.
“Initial critical steps have been taken to restore macroeconomic stability, boost revenues, and create the conditions necessary to reignite growth and reduce poverty. These ongoing measures are part of a broader strategy to increase revenues, create jobs, and foster sustainable economic growth.”
This combined total of $2.25 billion aims to provide essential financial and technical support as the government tackles economic distortions and works towards increasing non-oil revenues for fiscal sustainability.
Mr. Edun emphasized the significance of these reforms, 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.
“We welcome the support of the RESET and ARMOR programs as we further consolidate and implement our policy reforms, consistent with accelerating investment and using public resources more sustainably to achieve our development goals.”
Ousmane Diagana, the World Bank Vice President for Western and Central Africa, commended Nigeria’s efforts, noting that the comprehensive macro-fiscal reforms are placing the country on a new path towards stabilizing the economy and lifting people out of poverty.
The financial support from the World Bank will focus on strengthening Nigeria’s economic policy framework, creating fiscal space, and protecting the poor and vulnerable.
The ARMOR PforR program specifically aims to support tax and excise reforms, improve tax revenue and customs administration, and safeguard oil revenues.
Commenting on the endorsement from the World Bank, Mr. Edun expressed gratitude for the partnership, emphasizing the importance of accelerating investment and using public resources sustainably to achieve development goals.
