FG SECURES WORLD BANK’S $2.1BN LOAN

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The Federal Government has secured $2.1 billion from the World Bank.

According to a statement released on Thursday, the seven projects cover areas like nutrition, access to electricity, states’ fiscal transparency, polio eradication, women’s economic empowerment, public finance and national statistics and reducing vulnerability to soil erosion.

The projects were approved by the International Development Association (IDA), the bank’s low-interest arm.

Read FG TO BORROW $2.8BN FOR 2018 BUDGET

According to the Bretton Wood institution, more than half of the loan would be used to fund power, climate change projects and boost fiscal transparency.

A $7 million grant was also approved for nutrition.

“The federal government of Nigeria’s economic recovery and growth plan identifies human capital investment, restoring growth, and building a competitive economy as its key pillars,” Rachid Benmessaoud, World Bank country director for Nigeria, said.

“The approved projects support the implementation of the government’s growth plan.

“The World Bank Group (WBG) has extended its country partnership strategy for Nigeria until June 30, 2019. During FY2018 and FY2019, the WBG support will focus on revenue diversification and mobilization, addressing the binding constraints for attracting private financing, and improving social services delivery for building the human capital needed for inclusive economic growth, in alignment with the economic recovery and growth plan.”

The approved projects are:

  • State Fiscal Transparency, Accountability and Sustainability Project – $750 million
  • Fiscal Governance and Institutions Project – $125 million
  • Nigeria Erosion and Watershed Management Project – $400 million
  • Nigeria Electrification Project – $350 million
  • Accelerating Nutrition Results in Nigeria Project – $7 million
  • Nigeria Polio Eradication Support Project – $150 million
  • Nigeria for Women Project – $100 million

Top Executive Directors of the Bank visited Nigeria in the early part of this year.

It was reported on Wednesday that the Federal Government will borrow $2.8 billion to finance key projects in 2018 budget.

President Buhari has signed the 2018 budget into law few weeks ago.

The budget has generated controversy between the Executive and Legislative over cost cutting and insertion of projects.

 

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