World Bank approves $1.08bn loan for Nigeria
…As CBN boosts external reserves to $23.11bn
BY MOTLANI OSENI
The World Bank has approved a $1.08 billion concessional loan for Nigeria, aimed at enhancing education quality, building community resilience, and improving nutrition for underserved groups.
The loan, initially designed in response to the COVID-19 pandemic, will bolster the country’s recovery from economic challenges, especially following the government’s economic reforms in 2023. Of the total amount, $500 million is earmarked for an economic stimulus program, another $500 million for education, and the balance will support nutrition programs across Nigeria.
In a related development, Nigeria’s foreign exchange position has been bolstered by the Central Bank of Nigeria’s (CBN) successful management of its Net Foreign Exchange Reserves (NFER), which hit $23.11 billion at the end of 2024—the highest in over three years.
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This marks a dramatic rise from $3.99 billion at the end of 2023, underscoring the significant improvement in the country’s external liquidity, reduced short-term obligations, and renewed investor confidence.
The CBN has attributed the reserves’ growth to strategic policy actions, including reducing short-term foreign exchange liabilities and rebuilding confidence in the FX market.
The CBN’s efforts have also contributed to a rise in gross external reserves to $40.19 billion, with projections for continued improvements, driven by enhanced oil production and export growth, alongside a more diversified non-oil FX earnings stream.
Governor Olayemi Cardoso emphasized that these outcomes result from deliberate, transparent policy choices aimed at strengthening Nigeria’s financial resilience.
