World Bank approves $57bn for Nigeria, others - FUT CLICK

21 March, 2017

World Bank approves $57bn for Nigeria, others

The World Bank Group has announced the approval of $57bn for Nigeria and other sub-Saharan African countries for the next three years.


The announcement, which followed a meeting with G20 finance ministers and central bank governors, said the fund would be used to scale up investments and de-risk private sector participation for accelerated growth and development in Sub-Saharan Africa.

It was not clear as of press time how much Nigeria would benefit from the loan but the Senior Communications Officer for the World Bank in Nigeria, Olufunke Olufon, told our correspondent on the telephone that only the Ministry of Finance could give the details.

The bulk of the financing, $45bn, will come from the International Development Association, the World Bank Group’s fund for the poorest countries.

The financing for Sub-Saharan Africa will also include an estimated $8bn in private sector investments from the International Finance Corporation, a private sector arm of the group, and $4bn in financing from the International Bank for Reconstruction and Development, its non-concessional public sector arm.

The bank said in December 2016, development partners agreed to a record $75bn for the IDA, a dramatic increase based on an innovative move to blend donor contributions to the IDA with World Bank Group’s internal resources, and with funds raised through capital markets. Sixty per cent of the IDA financing is expected to go to sub-Saharan Africa, home to more than half of the countries eligible for the financing. This funding is available for the period known as IDA18, which runs from July 1, 2017 to June 30, 2020.

A statement issued by the bank in Abuja on Monday said the World Bank Group President, Jim Yong Kim, made the announcement before leaving for a trip to Rwanda and Tanzania to emphasise its support for the entire region.

The announcement, which followed a meeting with G20 finance ministers and central bank governors, said the fund would be used to scale up investments and de-risk private sector participation for accelerated growth and development in Sub-Saharan Africa.It was not clear as of press time how much Nigeria would benefit from the loan but the Senior Communications Officer for the World Bank in Nigeria, Olufunke Olufon, told our correspondent on the telephone that only the Ministry of Finance could give the details.

The financing for Sub-Saharan Africa will also include an estimated $8bn in private sector investments from the International Finance Corporation, a private sector arm of the group, and $4bn in financing from the International Bank for Reconstruction and Development, its non-concessional public sector arm.The bank said in December 2016, development partners agreed to a record $75bn for the IDA, a dramatic increase based on an innovative move to blend donor contributions to the IDA with World Bank Group’s internal resources, and with funds raised through capital markets.

Sixty per cent of the IDA financing is expected to go to sub-Saharan Africa, home to more than half of the countries eligible for the financing. This funding is available for the period known as IDA18, which runs from July 1, 2017 to June 30, 2020.

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