The World Bank has cleared Nigeria to receive the $1.5 billion loan requested by the country earlier in 2020.
To ratify the loan, the bank instated a Country Partnership Framework (CPF) which will sustain its engagement with the government of Nigeria for five years (2021 – 2024).
The World Bank plans to apply a phased and adaptive approach in its support for the Nigerian government during this period, the Country Director for Nigeria, Shubham Chaudhuri noted.
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According to the announcement, the decision is backed by the severe state of things in Nigeria as it grapples recession.
Nigeria economy is further projected to contract 4% in 2020, with oil prices in crisis, the WB statement shows. More so, there is a chance that the government would experience a $15 billion drop in its revenue in 2020.
In the announcement, WB ultimately put a number to its projection that Nigeria could house a percentage of poor people in 2020. It says about 5 million Nigerians could fall into poverty this year.
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The loan will assist Nigeria’s budget deficit and help with the shock left on its economy by the coronavirus pandemic.
World Bank Loan of $1.5 billion to Nigeria in 2020
A statement containing information of the $1.5 billion loans to Nigeria was released by the World Bank on December 15.
The IFC and the Multilateral Investment Guarantee Agency (MIGA) had participated in the development of the loan the World Bank statement said.
Contained in the CPF are schedules to improve Nigeria’s digital infrastructure and livelihoods.
Nigeria had waited months for the approval of the $1.5 billion loans due to the World Bank’s demand for certain reforms in parameters that influence the country’s economic state.