The World Bank has approved a sum of $2.25 billion loan for Nigeria to supports its economic reforms. Wale Edun, Minister of Finance who disclosed this, said the loan is to finance two critical economy projects; Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) and NG Accelerating Resource Mobilization Reforms Programme-for-Results (ARMOR) with a proposed funding of $1.5 billion and $750 million respectively.

He noted that the loans are part of President Tinubu’s ongoing efforts to stabilize the economy, reposition it for sustained and inclusive growth, and provide urgent support to the poor and vulnerable.

“We have undertaken bold and necessary reforms to restore macroeconomic stability and put Nigeria on a path to sustainable and inclusive economic growth. We welcome the support of the RESET and ARMOR programs as we further consolidate and implement our policy reforms, consistent with accelerating investment and using public resources more sustainably to achieve our development goals.”

The World Bank, Vice President for Western and Central Africa, Ousmane Diagana, said Nigeria’s comprehensive macro-fiscal reforms are placing the country on a new path that can stabilize the economy and lift people out of poverty.

“It is essential to maintain the momentum of these reforms and continue to provide support to the poor and vulnerable to mitigate the impact of the cost-of-living crisis. This financing package strengthens the World Bank’s strong partnership with Nigeria and supports efforts to rejuvenate the economy and expedite poverty reduction, serving as an example for Africa.”

The development comes as the total debt stock of Nigeria at the end of 2023 stood at N97.341 trillion, according to the Debt Management Office. However, foreign debt stood at N38.22 trillion, accounting for 39 percent of the total debt stocks as of the end of 2023.