World Bank withholds $1.5b loan to Nigeria - The Nation Newspaper

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Nigeria got a caveat on Thursday to get approval for a $1.5 billion loan he is seeking from the World Bank. The reforms around the naira must be strengthened by the Federal Government, the financial institution is insisting.

According to a Reuters news agency report, World Bank Country Director in Nigeria Shubham Chaudhuri gave the condition in Abuja at the launch of the latest World Bank Nigeria Development Update .

These reforms include: unification of the naira and removal of fuel subsidy as conditions to be met before Nigeria can access the$1.5 billion facility. “In other words, while COVID-19 will hit incomes across all countries, Nigeria is expected to suffer twice as much. The statement reads: “In the next three years, an average Nigerian could see a reversal of decades of economic growth and the country could enter its deepest recession since the 1980s.

The pace of recovery next year and beyond, the NDU release said “remains highly uncertain and subject to the pace of reforms.”

 

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