Nigeria’s $ 1.5 billion loan request still pending – World Bank – Nairametrics
The World Bank said the $ 1.5 billion loan to Nigeria is still ongoing and called for more currency reforms.
It was disclosed By Shubham Chaudhuri, World Bank Country Director for Nigeria, on Thursday during the presentation of the World Bank’s Nigeria Development Update (NDU) for December.
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Chaudhuri said that despite the reforms put in place by the federal government, the World Bank was cautious and had its reservations.
“I think the way our board of directors and our shareholders have approached this budget aid, is it really to say that the country asking for the aid has done everything it can to help itself?” he said.
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Think of it this way, when you have a $ 10 billion or $ 15 billion hole, $ 1.5 billion is just a little bit of that, the question is how the rest of that hole is. -he makes ?
âWhat is sustainability in 2021 and beyond? And that is why we are thinking about the overall outlook for the future, in terms of macro adequacy and flexibility and management of exchange rates. “
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He said the World Bank recognizes Nigeria’s efforts, but the country still needs “Healthy macro-fiscal base”.
âThis is why our shareholders and our management continue to say that we recognize everything Nigeria has done, but for this $ 1.5 billion to truly be part of the larger effort to put Nigeria on a solid macro-fiscal base in the future, we need to be a little more.
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He added that the World Bank was working on another loan of $ 1.5 billion different from the budget support loan, which consisted of two separate credits of $ 750 million to support the efforts of the state government, including approval is scheduled for December 14.
âSo one is additional funding for the State Fiscal Transparency and Sustainability Program (SFTAS) to get results.
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âThe other is the Nigeria COVID-19 Action Recovery and Economic Stimulus (CARES) program, which aims to help states protect livelihoods, improve food security and support local economic activity.
“These are therefore the two operations which are envisaged by our board of directors on Monday”, he said.
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What you should know
- Nairametrics reported in August that the World Bank had yet to approve the much needed $ 1.5 billion loan requested by Nigeria in August. The delay was due to concerns over the reforms, even though the World Bank felt that the country had not shown sufficient commitment to carry them out.
- Minister of Finance, Budget and National Planning Zainab Ahmed said Nigeria is close to realizing its plans to secure the $ 1.5 billion loan from the World Bank as it is at the final phase of the agreement, after having fulfilled the conditions set by the international multilateral organization.
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