Federal Government of Nigeria is pressing for a $750 million loan from the World Bank. The amount is part of the broader $2.25 billion approved by the World Bank ,WB, for Nigeria on June 13, 2024, to bolster Nigeria’s economic stability and support its vulnerable populations.
The other second part of the loan package was for the Nigeria Reforms for Economic Stabilisation to Enable Transformation, Development Policy Financing Programme project. Already, an agreement for the loan has been signed between Nigeria (through the Ministry of Finance) and the World Bank.
The agreement document read in part, “The bank agrees to lend to the borrower the amount of $750,000,000 as such amount may be converted from time to time through a currency conversion “Loan” to assist in financing the programme”.
“The borrower may withdraw the proceeds of the loan in accordance with Section IV of Schedule 2 to this Agreement. All withdrawals from the loan account shall be deposited by the Bank into an account specified by the Borrower and acceptable to the bank”.
According to the Disbursement Linked Indicators set out in the loan agreement, the loan will only be released upon achieving measurable progress in key areas.
