World Bank Withholds $1.5b Loan To Nigeria

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 (NDU).

Mr. Shubham said the $1.5 billion loan request would be tabled next week before the World Bank Board for approval.

Nigeria is requesting for the $1.5 billion facility to mitigate the impact of low oil prices and the decimation of the economy by the corona virus pandemic.

For any country to access World Bank loan, a number of conditions are usually given. In the case of Nigeria, the World Bank is demanding a set of reforms.

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.

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