The World Bank has approved a total of $2.25 billion for Nigeria to support the federal government’s efforts to sustain economic reforms, accelerate non-oil revenue generation, and assist impoverished Nigerians.

This funding includes $1.5 billion for the Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Programme (DPF) and $750 million for the Accelerating Resource Mobilization Reforms (ARMOR) Programme-for-Results (PforR). The World Bank stated that these interventions provide immediate financial and technical support for Nigeria’s urgent economic stabilization efforts and scaled-up support for its poorest citizens.

The initiatives aim to bolster Nigeria’s multi-year efforts to increase non-oil revenues, protect oil revenues, promote fiscal sustainability, and ensure quality public services. Facing a fragile economic situation, Nigeria recognized the need for urgent reforms to address economic distortions and strengthen its fiscal outlook.

The World Bank acknowledged the initial critical steps taken by the Nigerian government to restore macroeconomic stability, boost revenues, and create conditions for growth and poverty reduction. These steps included unifying multiple official exchange rates, fostering a market-determined rate, and significantly adjusting gasoline prices to phase out the costly petrol subsidy.

Additionally, the Central Bank of Nigeria (CBN) has focused on maintaining price stability by tightening monetary policy and raising interest rates to combat inflation. A targeted cash transfer program is also being rolled out to alleviate the impact of high inflation on economically insecure households.

Welcoming the latest financing approvals, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stated that the federal government is committed to bold reforms aimed at restoring macroeconomic stability and driving sustainable and inclusive economic growth.

Edun said, “We welcome the support of the RESET and ARMOR programmes as we consolidate and implement our macro-fiscal and social protection policy reforms, aiming to accelerate investment and redirect public resources sustainably to achieve development priorities.”

World Bank Vice President for Western and Central Africa, Ousmane Diagana, highlighted Nigeria’s efforts to implement far-reaching macro-fiscal reforms, positioning the country on a path to economic stability and poverty reduction. Diagana emphasized the importance of sustaining reform momentum and expanding protection for the poor to cushion the effects of rising living costs.

“This financing package reinforces the World Bank’s strong partnership with Nigeria, supporting the revitalization of its economy and fast-tracking poverty reduction, which can serve as a beacon for Africa,” Diagana added.

In a separate statement, the Director of Information and Public Relations at the Federal Ministry of Finance, Mohammed Manga, explained that the RESET DPF aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect the vulnerable. Meanwhile, the ARMOR PforR supports tax and excise reforms, improves tax revenue and customs administration, and safeguards oil revenues.

Established in 1960, the International Development Association (IDA) is the World Bank’s fund for the poorest countries, providing grants and low- to zero-interest loans for projects that boost economic growth, reduce poverty, and improve lives. IDA is a major source of assistance for the world’s 76 poorest countries, 39 of which are in Africa, impacting the lives of 1.6 billion people eligible for its support.