The World Bank is delaying approval of Nigeria’s request for a $1.5 billion loan due to concerns over desired reforms
Unidentified sources told Reuters that the main concern being expressed by the World Bank was Naira reform.
Both the World Bank and International Monetary Fund, IMF, have, in the past, advised Nigeria to float its currency and allow market forces to determine the value of the naira.
According to the report, the World Bank had aimed to bring the loan request to its board for approval this August but the approval will now be delayed till October.
Although the World Bank has not outlined any demands, fuel subsidies and electricity tariffs were also said to be a part of the discussions.
The CBN has devalued the naira twice in 2020 and the Federal Executive Council in July approved the removal of petrol subsidy.
