This was after the apex bank said it had approved two operations: $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation, RESET, Development Policy Financing Programme, DPF, and $750 million for the Nigeria Accelerating Resource Mobilization Reforms, ARMOR, Program-for-Results, PforR.
This combined $2.25 billion package provides immediate financial and technical support to Nigeria’s urgent efforts to stabilise the economy and scale up support to the poor and most economically at risk.
According to a document released by the world’s apex bank, the loan further supports Nigeria’s ambitious, multi-year effort to raise non-oil revenues and safeguard oil revenues, promote fiscal sustainability and provide sufficient resources to deliver quality public services.
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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.
The first tranche of $750m was disbursed on July 2, 2024, while the second tranche, tied to the fulfilment of specific economic reform conditions, was disbursed in November 2024.
The bank said that the RESET DPF is focused on supporting Nigeria to strengthen its economic policy framework by creating fiscal space and protecting the poor and economically insecure.
The ARMOR PforR will support efforts to implement tax and excise reforms, strengthen tax revenue and customs administrations, and safeguard oil revenues.