By Ade Jacobs
The World Bank has approved a total of $3 billion for Nigeria as loan and grant respectively.
The board of the bank approved a $1.5 billion loan for the Federal Government, apart from another $1.5 billion grant to cushion the effects of COVID 19 and another project by the Ministry of Finance, a report by The Cable revealed.
The projects are Nigeria COVID-19 Action Recovery and Economic Stimulus – Programme for Results (Nigeria CARES) and the State Fiscal Transparency, Accountability and Sustainability Programme for Results (SFTAS) Additional Financing.
Both projects will get a $750 million facility through the International Development Association (IDA).
The online newspaper quoted Shubham Chaudhuri, World Bank country director for Nigeria and said that the facility is a five-year country partnership framework (CPF).
The bank stated that the facility was prepared jointly with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
According to Chaudhuri, “This country partnership framework will guide our engagement for the next five years in supporting the government of Nigeria’s strategic priorities by taking a phased and adaptive approach.
“To realise its long-term potential, the country has to make tangible progress on key challenges and pursue some bold reforms. Our engagement will focus on supporting Nigeria’s efforts to reduce poverty and promote sustained private sector-led growth.”
The loan will focus on four areas of engagement: Investing in human capital, promoting jobs and economic transformation and diversification, enhancing resilience and strengthening the foundations of the public sector, the Bretton Wood institution said.