BREAKING: World Bank Approves $1.5 Billion Loan For Nigeria To Reduce Poverty

The World Bank has approved Nigeria’s request for a $1.5 billion loan, as Africa’s most populous nation battles a coronavirus-induced recession.

In a statement on Tuesday entitled “World Bank Group to boost Nigeria’s efforts to reduce poverty,” the bank said that the loan facility is a five-year Country Partnership Framework (CPF) that will last from 2021 to 2024.

World Bank Board of Directors approved the $1.5 billion for two projects, which include: Nigeria Covid-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES) and the State Fiscal Transparency, Accountability and Sustainability Program for Results (SFTAS).

Shubham Chaudhuri, World Bank Country Director for Nigeria, said the loan would focus on four areas of engagement namely, investing in human capital, promoting jobs and economic transformation and diversification, enhancing resilience and strengthening the foundations of the public sector.

“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 realize 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,” Chaudhuri said.

This is coming just four months after the World Bank approved a $114.28 million loan to help Nigeria prevent, detect and respond to the threat posed by the COVID-19 pandemic with a specific focus on state level responses.