NIGERIA GETS US$2.1bn LOAN FROM WORLD BANK

World Bank outlines US$2.1 billion concessionary loan for Key projects in Nigeria.

The World Bank have approved a US$2.1bn project support loan for Nigeria. The loan is for the support of seven(7) key projects in the country. The projects includes nutrition, access to electricity, fiscal transparency of states, eradication of polio, and also women economic empowerment. It also includes public finance and national statistics and reduction of soil vulnerability to erosion.

The World Bank have also extended its Country Partnership Strategy (CPS) for Nigeria to June 30, 2019. During this period (2018-2019), its focus will be on revenue diversification and mobilization, addressing the binding constraints for attracting private financing, and also improving social services delivery for building the human capital needed for inclusive economic growth, in alignment with the ERGP.

The federal government’s Economic Recovery and Growth Plan (ERGP) identifies human capital investment, restoring growth, and also building a competitive economy as key pillars.

Expenditure Breakdown

States’ fiscal transparency;

The approved programme of support in 2018 comprises of transparency projects. An International Development Association (IDA) credit of US$750 million will finance the approved projects.

The transparency projects will support the implementation of government’s growth plan for the economy. Also strengthening of fiscal transparency will help build trust in government. As there will be monitoring of fiscal risks and also accountability in public resource management.

Public finance and national statistics;

Fiscal Governance and Institutions Projects which will help increase revenue and capital expenditure, strengthen fiscal accountability, including expenditure effectiveness and also improve the quality of statistical information contributing to evidence-based policy making. The financing of these projects will also be through an IDA credit of US$125 million.

Reduction of soil vulnerability to erosion;

The Nigeria Erosion and Watershed Management Projects will use innovative approaches to tackle land degradation and major gully erosion formations. International best practices and community participation will be used in participating states. An IDA credit of US$400 million will cover for these projects.

Access to electricity;

For power sector, solar mini-grids and stand-alone solar systems will provide electricity to 2.5 million people and 70,000 micro SMEs. Also publicly-funded reliable electricity will be provided to seven universities and two teaching hospitals.  An IDA credit of US$350 million will be cater for the project.

Nutrition;

Next nutrition, over 8.7 million people, mostly pregnant and lactating women, adolescent girls and children below five years old will benefit from the projects. The project will contribute to reducing chronic malnutrition, maternal and child mortality rates, improved school completion and performance. It will also enhance labour force productivity and economic growth in Nigeria. The project finance consists of an IDA credit of US$225 million and a Global Financing Facility grant of US$7 million.

Polio Eradication;

Also an IDA credit of US$150 million will help sponsor the Nigeria Polio Eradication Support Projects. The project will help improve immunisation coverage with oral vaccines to the national target of 85 per cent in 18 months.

Women economic empowerment;

For the Nigeria for Women Project, about US$100 million finance through an IDA credit has been approved for the project designed to directly impact 324,000 women beneficiaries. This will be through investments in comprehensive skills training, the leverage of financial and technical resources, and support to policy dialogue on women’s economic empowerment.

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