International financial institution the World Bank has approved a $2.25 billion package to help Nigeria improve its oil revenue management. The package will help ensure fiscal sustainability, economic growth, and enhanced public services for economically vulnerable citizens.
The package includes $1.5 billion dedicated to the Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program, aimed at strengthening Nigeria’s economic policy framework.
Additionally, $750 million will be allocated to the Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results, which will assist Nigeria in implementing tax reforms and safeguarding oil revenues.
“We welcome the support of the RESET and ARMOR programs as we further consolidate and implement our macro-fiscal and social protection policy reforms, consistent with accelerating investment and redirecting public resources sustainably to achieve development priorities,” stated Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy.
Nigeria has phased out its gasoline subsidy and unified multiple official foreign currency exchange rates in recent efforts to ensure macroeconomic stability.
“It is critical to sustain the reform momentum and continue to scale up and expand protection for the poor and economically at risk, cushioning the effects of cost-of-living pressures on citizens,” stated Ousmane Diagana, World Bank Vice President for Western and Central Africa.
Nigeria is also prioritizing price stability of goods and services and increasing interest rates to reduce inflation and accelerate poverty reduction.
