Nigeria’s request for a $1.5 billion loan was eventually accepted by the World Bank. This was revealed on Tuesday in a World Bank statement indicating that the service is a five years Country Partnership Framework (CPF) that will last from 2021 to 2024.
“This Country Partnership Framework will guide our engagement for the next 5 years in supporting the Government of Nigeria’s strategic priorities by taking a phased and adaptive approach,” World Bank Country Director for Nigeria, Shubham Chaudhuri said.
The loan according to World Bank was intended for two bold programs, including the Nigeria Covid-19 Action Recovery and Economic Stimulus Program for Results (Nigeria CARES) and the State Fiscal Openness, Responsibility and Sustainability Program for Results.
The World Bank Board of Directors authorized the $1.5 billion (SFTAS).
The CPF will focus on four fields of commitment, including investment in human resources by increasing access to basic education, safe water, and sanitation services; expanding primary healthcare; and increasing the coverage and performance of social assistance programs.
Promoting employment and economic transformation and diversification by encouraging private investment and job creation initiatives and increasing access for households and enterprises to affordable and renewable electricity.
In order to provide Nigerians with better livelihoods, the CPF will also concentrate on boosting digital connectivity and creating urban corridors and smart cities.
“With the sharp fall in oil prices as a result of COVID-19, the economy is projected to contract by over 4% in 2020, plunging the country into its deepest recession since the 1980s. Government revenues could fall by more than 15 billion dollars this year, and the crisis will push an additional 5million Nigerians into poverty in 2020,” the statement read in part.
Strengthening the public sector’s foundations through enhancing public financial management and strengthening public-government social contracts by strengthened fiscal and debt stewardship.
In the release, the World Bank added that Nigeria is at a crucial juncture, hence the loan approval.
“The Country Partnership Framework leverages the World Bank Group to enable business growth that is inclusive and sustainable,” IFC Director for Southern Africa and Nigeria, Kevin Njiraini also said.
The World Bank acknowledged the planning of the facility together with the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Organization (MIGA).
This CPF suggests a collective solution to how money around the whole Bank Group will better help the Government’s attempts to bring 100 million people out of poverty by achieving its target.