The Business NG - June 21, 2024

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World Bank Warns Nigeria: Implement Economic Reforms or Risk Losing $1.5 Billion Loan




The World Bank has cautioned Nigeria that it may cancel a $1.5 billion loan unless the country meets strict economic reform criteria. The loan, aimed at supporting Nigeria's economic stabilization and transformation, is contingent on the country's adherence to specified conditions and deadlines.

According to the financing agreement documents, Nigeria must demonstrate progress in carrying out the economic program, maintain an adequate macroeconomic policy framework, and implement key requirements such as fiscal transparency and VAT rate increases. Failure to meet these conditions within 90 days may result in the cancellation of the loan.

This development highlights the World Bank's emphasis on ensuring that Nigeria implements necessary economic reforms to secure the loan, which is crucial for the country's economic stability and growth. The loan comprises an IDA credit and an IBRD loan with long-term repayment terms, totaling $1.5 billion. Nigeria's Minister of Finance and the World Bank's Acting Country Director signed the agreements, outlining the strict conditions for loan disbursement.