The World Bank has approved a fresh $1.5 billion (about N570bn) funding to support Nigeria’s ailing economy after negative impacts of the COVID-19 pandemic.
In a statement, the bank said $750m of the fund was for a five-year Country Partnership Framework (CPF) while the other $750m was for Nigeria COVID-19 Action Recovery and Economic Stimulus Programme for Results (Nigeria CARES) and the State Fiscal Transparency, Accountability and Sustainability Programme for Results (SFTAS).
The World Bank Country Director for Nigeria, Shubham Chaudhuri, said in the statement, “The World Bank Group (WBG) discussed a new five-year Country Partnership Framework (CPF) from 2021 to 2024 and approved a $1.5bn package to help build a resilient recovery post-COVID-19. Nigeria is at a critical juncture.”
Chaudhuri said with the sharp fall in oil prices as a result of COVID-19, Nigeria’s economy is projected to contract by over four per cent in 2020, plunging the country into its deepest recession since the 1980s.
“Government revenues could fall by more than $15bn this year, and the crisis will push an additional five million Nigerians into poverty in 2020. This Country Partnership Framework (CPF) will guide our engagement for the next five years in supporting the Government of Nigeria’s strategic priorities by taking a phased and adaptive approach,” he said.