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External Debt: World Bank Approves Additional $1.5bn Loan To Nigeria

-by our correspondent.

The World Bank has approved Nigeria’s request for another $1.5 billion loan.

In a statement, the Breton-Wood institution explained the loan is a five-year country partnership framework (CPF) that will last from 2021 to 2024. “The facility is for Investment in human capital, promoting jobs and economic transformation and diversification, enhancing resilience, and strengthening the foundations of the public sector.” The statement read.

The statement said the Bank’s engagement will focus on supporting Nigeria’s efforts to reduce poverty and promote sustained private sector-led growth.

According to the World Bank, the loan was jointly prepared alongside the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

Lagos – Nigeria

“This country partnership framework will guide our engagement for the next five years in supporting the government of Nigeria’s strategic priorities by taking a phased and adaptive approach,” The World Bank country director for Nigeria, Shubham Chaudhuri, said.

The bank’s board of directors also approved $1.5 billion additional financing for two projects in Nigeria; the Nigeria COVID-19 Action Recovery and Economic Stimulus (Nigeria CARES) and The State Fiscal Transparency, Accountability, and Sustainability Program (SFTAS). Both projects will get a $750 million facility through the International Development Association (IDA).

According to data from the Debt Management Office (DMO), Nigeria’s indebtedness to the World Bank stood at $9.81bn as at September 30, 2019 made up of debt to the IDA and IBRD at $9.41bn and N409.51m. The DMO also puts Nigeria’s total external debt stock at $31.48bn as at June30, 2020.

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