Nigeria: a $2.25 billion loan from the World Bank to support reforms

Nigeria: a $2.25 billion loan from the World Bank to support reforms
Nigeria: a $2.25 billion loan from the World Bank to support reforms

Africa’s most populous country has been in the grip of a deep economic crisis since President Bola Ahmed Tinubu implemented several reforms when he came to power a year ago.

Mr Tinubu announced the end of a costly fuel subsidy and liberalized the naira, leading to higher fuel and food prices and a fall in the value of the currency.

A major oil producer dependent on crude exports, Nigeria is also struggling to maintain its oil production and is therefore experiencing a decline in revenue.

In a statement released late Thursday, the World Bank said two loans of $1.5 billion and $750 million would help Nigeria stabilize its economy, support the poorest and improve its non-profit income. oil tankers.

Read also: Nigeria inaugurates key gas projects to increase its supply by more than 25%

“Nigeria’s concerted efforts to implement far-reaching macro-fiscal reforms put it on a new path that can stabilize its economy,” said Ousmane Diagana, World Bank vice president for Africa. West and Central Africa.

“It is essential to maintain the momentum of reforms and continue to strengthen and expand protections for the poor and economically at-risk people.”

The first part of the loan aims to strengthen policies and protect the poor, while the second supports tax reforms and oil revenues.

The head of state has repeatedly acknowledged the economic difficulties brought about by his reforms, but he has constantly called on Nigerians to be patient to allow time for the measures to bear fruit.

Read also: Nigeria: unions suspend strike to negotiate minimum wage

General inflation reached 33.69% in April with food inflation exceeding 40.5%, according to the national statistics office.

The soaring cost of living has triggered some protests and looting.

At the beginning of the month, unions led a one-day strike that paralyzed the country, blocking internal flights and suspending electricity distribution throughout the country, in order to influence the government on the amount of a new minimum wage.

Discussions between the authorities and the unions are still ongoing.

By Le360 Africa (with AFP)

06/14/2024 at 6:00 p.m.

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