The World Bank has given the nod to two financial packages amounting to $2.25 billion for Nigeria, with the aim of assisting the Federal Government’s strategies to stabilize the economy.
The approval was unveiled in a statement titled, “Endorsing Nigeria’s Indigenous Reforms: New World Bank Aid for Comprehensive Growth and Diversification of Revenue”.
The statement disclosed that the World Bank has today approved two operations: a $1.5 billion aid for the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF), and a $750 million aid for the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).
This combined $2.25 billion package provides immediate financial and technical backing to Nigeria’s urgent efforts to stabilize the economy and extend support to the economically vulnerable and impoverished.
It further endorses Nigeria’s ambitious, multi-year plan to boost non-oil revenues and safeguard oil revenues to promote fiscal sustainability and allocate sufficient resources to deliver top-notch public services.
In the face of a precarious economic situation, Nigeria recognized the need for a shift in strategy and embarked on key reforms to rectify economic imbalances and enhance the fiscal outlook.
Initial crucial steps to restore macroeconomic stability, increase revenues, and create conditions to reignite growth and poverty reduction have been initiated.
These include unifying the multiple official exchange rates and fostering a market-determined official rate, as well as significantly adjusting gasoline prices to initiate the phase-out of the costly, regressive, and non-transparent gasoline subsidy.
The Central Bank of Nigeria (CBN) has refocused on its primary mandate of price stability and is tightening monetary policy, including by raising interest rates, as is suitable to curb inflation.
A targeted cash transfer program is being launched to alleviate the impact of high inflation on the poor and economically insecure households.
Responding to the development, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated: “We have embarked on bold and necessary reforms to restore macroeconomic stability and steer the country back onto a sustainable and inclusive economic growth path that will create quality jobs and economic opportunities for all Nigerians.”
Also commenting, Ousmane Diagana, the World Bank Vice President for Western and Central Africa, said: “We welcome the support of the RESET and ARMOR programs as we further consolidate and implement our macro-fiscal and social protection policy reforms, consistent with accelerating investment and redirecting public resources sustainably to achieve development priorities.
“Nigeria’s concerted efforts to implement far-reaching macro-fiscal reforms place it on a new path which can stabilize its economy and lift its people out of poverty.
“It is critical to sustain the reform momentum and continue to scale up and expand protection to the poor and economically at risk to cushion the effects of cost-of-living pressures on citizens.
“This financing package reinforces the World Bank’s strong partnership with Nigeria, and our support towards reinvigorating its economy and fast-tracking poverty reduction, which can serve as a beacon for Africa.
“The RESET DPF is focused on supporting Nigeria strengthen its economic policy framework by creating fiscal space and protecting the poor and economically insecure.
“The ARMOR PforR will support efforts to implement tax and excise reforms, strengthen tax revenue and customs administrations, and safeguard oil revenues,” the World Bank concluded.
Despite the harsh economic conditions, the House of Representatives committee on national security and intelligence has urged the federal government to urgently purchase new aircraft for Tinubu and his Vice, Kashim Shettima. The committee made the call in a report released after its investigation into the condition of the aircraft in the presidential air fleet.
The committee recommended that the government procure two additional aircraft to provide a suitable, comfortable, and safe carrier befitting the status and responsibilities of the office of the president and vice-president of the Federal Republic of Nigeria. This move is seen as a cost-efficient and safe option, considering the fragile structure of the Nigerian federation and the dire consequences of any foreseen or unforeseen mishap that may arise as a result of the technical or operational inadequacy of the presidential air fleet.
The presidential fleet currently has six aircraft and six helicopters, with three of the aircraft and two of the helicopters unserviceable as of the time of the committee’s hearing. The committee recommended that a new aircraft “befitting the office of the President of the Federal Republic of Nigeria” be procured, taking into consideration the country’s leading role in the West African, African, and global scheme of affairs.
