The World Bank has fully disbursed a $1.5bn loan to Nigeria following the government’s implementation of key reforms, including the removal of petrol subsidies and the introduction of comprehensive tax policies.
According to the report by Punch newspaper on Monday, the loan, which is part of the Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing initiative, is among the fastest disbursements Nigeria has received with both tranches released in less than six months.
Quoting a World Bank document obtained by the newspaper, it said that the loan was approved on June 13, 2024, with the first tranche of $750m disbursed on July 2, 2024, while the second tranche, tied to the fulfilment of specific economic reform conditions, was disbursed in November 2024.
The report noted that the rapid disbursement contrasts with other loan programmes, which typically experience delays due to slow or partial implementation of conditions.
The World Bank, according to the report, commended the Nigerian government for not only meeting the condition, but exceeding expectations by fully deregulating the fuel market.
GIK/APA