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World Bank speaks on Nigeria’s $1.5 billion loan request, unveils date of approval



World Bank

The World Bank on Thursday, December 10, spoke about $1.5 billion loan to Nigeria, saying it was still in the works.

Shubham Chaudhuri, World Bank Country Director for Nigeria, disclosed this during the presentation of the World Bank Nigeria Development Update (NDU) for December.

Chaudhuri also said that the $1.5 billion loan is different from the budget support loan which was two separate $750 million credits to support the state government’s efforts, slated for approval on December 14.

He said: “I think the way that our board and our shareholders have approached this budget support, is really to say has the country that is requesting the support done all it can to help itself?” 

“Think of it this way, when you have said a 10 or 15 billion dollar hole, 1.5 billion dollars is just a little bit of that, the question is how is the rest of that hole being made up?

“What is sustainability in 2021 and beyond? And that is why we are thinking about the overall prospects going forward, in terms of the macro adequacy and the flexibility and exchange rate management.”

Chaudhuri explained further that the World Bank recognised the effort Nigeria had made, but the country still needed “sound macro-fiscal footing.”

“That is why our shareholders and our management are still saying we recognise how much Nigeria has done, but for this $1.5 billion to really be a part of the larger effort to put Nigeria on a sound macro-fiscal footing going forward, there needs to be a little bit more.”

 “So, one is additional financing for the State’s Fiscal Transparency Accountability and Sustainability (SFTAS) programme for results.

“The other is the Nigeria COVID-19 Action Recovery and Economic Stimulus (CARES) Programme, which is meant to support the states towards protecting livelihoods, enhancing food security, and supporting local economic activity. So those are the two operations that are being considered by our board on Monday.”

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