4 August - The World Bank has approved a US$500 million Development Policy Credit to support Nigeria’s economic reforms in the financial sector and public financial management.

The credit, according to the bank, is in response to the current global financial crisis.

“The loan is intended to provide budgetary support to the Federal Government of Nigeria to partially off- set the fiscal impact of the crisis as well as maintain its current economic reform path in the financial sector, fiscal policy and financial management, and governance,” said Michael Fuchs, and Lead Financial Economist and Task Team Leader.

This assistance package builds on strong government ownership of a medium-term reform program, which consolidates the successful record of economic management and reforms since 2001, while putting emphasis on cushioning the damaging impacts of the financial crisis on those at the poorest of the poor, the World Bank also said.

Commenting on the assistance, the Country Director for Nigeria, Onno Ruhl said, “The benefits to be derived from the program include maintaining confidence and stability in the financial system, strengthening the banking system, supporting reforms spearheaded by the Central Bank of Nigeria, as well as supporting the Government’s fiscal and financial management, including the objectives of the 2009 budget that focuses on maintaining fiscal stability while raising government investment spending to accelerate non-oil growth”.

The operation involved extensive consultations with a wide array of government agencies and other donors.

By staff writer

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