Finance: World Bank grants Nigeria $2.2 billion concessional loans to fund key projects

World Bank grants Nigeria $2.2 billion concessional loans to fund key projects

World Bank said more than half of the loans would be used to fund power and climate change projects and boost fiscal transparency.

The World Bank had granted a total of $2.1 billion in concessionary loans to key fund projects in Nigeria aimed at improving access to electricity and promoting governance.

More than half of the loans would be used to fund power and climate change projects and boost fiscal transparency. It also approved a $7 million grant for nutrition.

The projects were approved by the International Development Association (IDA), the bank’s low-interest arm of the international lender.

Rachid Benmessaoud, the World Bank Country Director for Nigeria, in a statement released on Thursday, June 28, 2018, said: “The Federal Government of Nigeria’s Economic Recovery and Growth Plan identifies human capital investment, restoring growth, and building a competitive economy as its key pillars."

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The World Bank Group (WBG) has extended its country partnership strategy for Nigeria until June 30, 2019. During FY2018 and FY2019, the WBG support will focus on revenue diversification and mobilization, addressing the binding constraints for attracting private financing, and improving social services delivery for building the human capital needed for inclusive economic growth, in alignment with the economic recovery and growth plan.”

Breakdown of the approved projects include:

- State Fiscal Transparency, Accountability and Sustainability Project – $750 million

- Fiscal Governance and Institutions Project – $125 million

- Nigeria Erosion and Watershed Management Project – $400 million

- Nigeria Electrification Project – $350 million

- Accelerating Nutrition Results in Nigeria Project – $7 million

- Nigeria Polio Eradication Support Project – $150 million

- Nigeria for Women Project – $100 million.

In its June 2018 Global Economic Prospects, the World Bank projected that Nigerian economy will grow by 2.1% this year, as non-oil sector growth remains subdued due to low investment, and at a 2.2% pace next year.

The Bretton Wood institution said growth in Sub-Saharan Africa will rise by 3.1% in 2018 and 3.5% in 2019, from 2.6% in 2017, as the recovery gradually strengthens in the largest economies.

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