World Bank Approves $3bn For Nigeria

After threatening to withhold $1.5billion until Nigeria carries out foreign exchange reforms to its satisfaction, the World Bank has finally approved the facility for Nigeria.
While Nigeria is still working on its forex reforms, it appears the World Bank was moved to change its mind because “government revenues could fall by more than $15billion this year, and the crisis will push an additional five million Nigerians into poverty in 2020.”
In a statement issued, yesterday, the World Bank said its board has approved the $1.5billion for two projects.
These are: an International Development Association (IDA) credit of $750million Nigeria Covid-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES).
“This program will help increase access to social transfers and basic services, as well as provide grants to poor and vulnerable households. It will also strengthen food supply chains for poor households while facilitating recovery and enhancing capabilities of MSMEs. This is financed through”, the World Bank said.
The second is another International Development Association (IDA) credit of $750million for State Fiscal Transparency, Accountability and Sustainability Program for Results (SFTAS).
This facility is to build “on the progress made across 36 States, the original SFTAS program will be expanded and scaled up in response to Covid-19”.
“The Additional Financing will help meet the financing gap in the Programme Expenditure Framework, due to the sharp reduction in government revenues associated with the crisis”.
It will also “help increase the efficiency in spending, strengthen revenue mobilization, and enhance accountability and transparency in public resource management to further strengthen state-level Covid-19 response.”
The World Bank was silent on if the forex reform it demanded from the Nigerian authorities has been carried out.
The World Bank Group (WBG) also approved a different $1.5billion package for Nigeria to help build a resilient recovery post-Covid-19.
The package is a new five-year Country Partnership Framework (CPF) to last from 2021 to 2024.
This $1.5billion is approved for social protection and strengthening of state-level Covid-19 response.