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Nigeria’s Reforms Receive Major Boost as World Bank Approves $2.25 Billion Loan

The World Bank has granted Nigeria a $2.25 billion loan for use in driving its recent economic reforms and alleviate the country’s worst cost-of-living crisis in many years. President Bola Tinubu’s reforms, such as ending fuel subsidies and unifying exchange rates, have resulted in surging inflation, causing significant hardship for the nation’s over 200 million people. $1.5 billion of loan will be channeled towards alleviating the reforms’ impact on the most vulnerable who face growing poverty and the remaining $750 million will support tax reforms and secure oil revenues, which have been under threat from chronic debt. $800 million of the $1.5 billion will be disbursed in a conditional cash transfer scheme for 15 million households, up from the previously estimated 3 million poorest households. Another $450 million will be channeled into a social protection scheme, with the UN advising it be invested in a sustained development program.

SOURCE: AP NEWS