30th December 2024
Following federal government implementation of key reforms, including removing fuel subsidies and introducing comprehensive tax policies, the World Bank, has fully disbursed a $1.5bn loan to Nigeria.
The loan, is among the fastest disbursements Nigeria has received with both tranches released in less than six months as part of the Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing initiative.
A World Bank document on Sunday, showed that the loan was approved on June 13, 2024, with the first tranche of $750m disbursed on July 2, 2024.
The second tranche, tied to the fulfillment of specific economic reform conditions, was disbursed in November 2024.
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In June 13, 2024, for more context, another loan of $750m was approved and disbursed on the same day for the Accelerating Resource Mobilization Reforms Programm for Results project in Nigeria.
The rapid disbursement was quicker than other loan programmes, which often which are delayed over partial implementation of conditions
The World Bank has only disbursed about $1.88m to Nigeria which is less than one per cent of the total approved $750m for the ARMOR project.
The $1.5bn loan disbursed to Nigeria was structured in two tranches with different maturity periods.
The first tranche was a $750m credit from the International Development Association, featuring a 12-year maturity and a six-year grace period.
The second tranche, a $750m loan from the International Bank for Reconstruction and Development, has a 24-year repayment period with an 11-year grace period.
