World Bank Group has approved a $1.5bn package to help Nigeria build a resilient recovery post COVID-19.
This was announced by World Bank in a statement entitled “World Bank Group to boost Nigeria’s efforts to reduce poverty” on Tuesday.
It noted that the facility is a five-year Country Partnership Framework (CPF) that will last from 2021 to 2024.
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The group stated that Nigeria was at a critical juncture and with the sharp fall in oil prices as a result of COVID-19, the economy was projected to contract by over four per cent in 2020, plunging the country into its deepest recession since the 1980s.
Government revenues could fall by more than $15bn in 2020, and the crisis would push an additional five million Nigerians into poverty in 2020, according to the World Bank.
The group’s Country Director for Nigeria, Shubham Chaudhuri expressed;
This Country Partnership Framework will guide our engagement for the next 5 years in supporting the Government of Nigeria’s strategic priorities by taking a phased and adaptive approach.
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).
CPF will focus on four areas of engagement which include investing in human capital by increasing access to basic education, quality water, and sanitation services; improving primary healthcare; and increasing the coverage and effectiveness of social assistance programs.
Promoting jobs and economic transformation and diversification by supporting measures to unlock private investment and job creation and increasing access to reliable and sustainable power for households and firms.
CPF will also focus on boosting digital infrastructure, and developing economic corridors and smart cities, to provide Nigerians with improved livelihoods.
Strengthening the foundations of the public sector by improving public financial management and strengthening the social contract between citizens and government through improved fiscal and debt management.
World Bank in the statement added that Nigeria is at a critical juncture, hence the approval of the loan.
It said;
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.
World Bank noted that the facility was prepared jointly with International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA).
CPF proposes a collaborative approach of how resources across the entire Bank Group can best support the Government’s effort to achieve its goal to lift 100 million citizens out of poverty.
