…says Nigeria faces $15bn revenue loss
The World Bank Group has announced a new five-year Country Partnership Framework (CPF) from 2021 to 2024 and approved a $1.5-billion package to help build a resilient recovery post-COVID-19.
In addition to that, the Bank also announced that it has approved $1.5 billion for two projects, which include: Nigeria COVID-19 Action Recovery and Economic Stimulus – Programme for Results (Nigeria CARES).
The Bank in a statement yesterday said the fund is approved for social protection and strengthened state-level COVID-19 response.
“Nigeria is at a critical juncture,” the bank said in the statement. The bank said government revenues could fall by more than $15 billion this year, and the crisis will push an additional five million Nigerians into poverty in 2020.
World Bank Country director for Nigeria, Shubham Chaudhuri says the partnership framework is designed to guide the bank’s engagement for “the next five years in supporting the government of Nigeria’s strategic priorities by taking a phased and adaptive approach.
“To realise its long-term potential, the country has to make tangible progress on key challenges and pursue some bold reforms. Our engagement will focus on supporting Nigeria’s efforts to reduce poverty and promote sustained private sector-led growth,” Chaudhuri said yesterday.
The two projects to be supported by the Bank is to help increase access to social transfers and basic services, as well as provide grants to poor and vulnerable households. It will also strengthen food supply chains for poor households while facilitating recovery and enhancing capabilities of MSMEs. It would be financed through an International Development Association (IDA) credit of $750 million.
The Bank in the statement also announce that the State Fiscal Transparency, Accountability and Sustainability Programme for Results (SFTAS) Additional Financing: Building on the progress made across 36 states, the original SFTAS programme, will be expanded and scaled up in response to COVID-19.
“The Additional Financing will help meet the financing gap in the Programme Expenditure Framework, due to the sharp reduction in government revenues associated with the crisis,” it said. “It will help increase the efficiency in spending, strengthen revenue mobilisation, and enhance accountability and transparency in public resource management to further strengthen state-level COVID-19 response.
“The CPF will focus on four areas of engagement: Investing in human capital by increasing access to basic education, quality water and sanitation services; improving primary healthcare; and increasing the coverage and effectiveness of social assistance programs. Additional investments in promoting women’s empowerment and youth employment and skills, especially for young women, will also help reduce maternal and child mortality.”
The Bank said it is also focusing on promoting jobs and economic transformation and diversification by supporting measures to unlock private investment and job creation and increasing access to reliable and sustainable power for households and firms. The CPF will also focus on boosting digital infrastructure, and developing economic corridors and smart cities, to provide Nigerians with improved livelihoods.
Chaudhuri said World Bank is determined to enhance resilience by strengthening service delivery and livelihood opportunities in the Northeast and other regions grappling with insecurity, as well as modernising agriculture and building climate resilience; strengthening the foundations of the public sector by improving public financial management and strengthening the social contract between citizens and government through improved fiscal and debt management.
“A strong private sector is critical to support Nigeria’s economic growth and development. The Country Partnership Framework leverages the World Bank Group to enable business growth that is inclusive and sustainable,” said Kevin Njiraini, IFC director for Southern Africa and Nigeria.