World Bank approves Nigeria’s $1.5 billion loan request

Following the assurance of the World Bank Country Director for Nigeria, Shubham Chaudhuri, the country’s request for a $1.5 billion loan has finally been approved by the organisation.

Chaudhuri spoke about the $1.5 billion loan to Nigeria, saying the bank was still in the works on Thursday, December 10.

The bank, in a statement on Tuesday, December 15, explained that the facility is a 5-year Country Partnership Framework (CPF) that will last from 2021 to 2024.

The statement read in part: “With the sharp fall in oil prices as a result of COVID-19, the economy is projected to contract by over 4% in 2020, plunging the country into its deepest recession since the 1980s.

“Government revenues could fall by more than 15 billion dollars this year, and the crisis will push an additional 5million Nigerians into poverty in 2020.’’

The Bank added that the facility was prepared jointly with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

Commenting about the partnership framework, Chaudhuri said: “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.”

The IFC Director for Southern Africa and Nigeria, Kevin Njiraini said: “The Country Partnership Framework leverages the World Bank Group to enable business growth that is inclusive and sustainable.’’