The Federal Government of Nigeria is set to benefit from World Bank’s $500 million loan facility for the Human Capital Opportunities for Prosperity and Equity (HOPE) project in the country.
The Minister of Budget and Economic Planning, Sen. Abubakar Atiku Bagudu made this known while welcoming the International Monetary Fund (IMF) Mission Chief for Nigeria, Mr. Axel Schimmelpfennig on Wednesday.
The loan facility according to the Minister, will increase the availability and effectiveness for financing for basic education and primary health care in the various states of the federation.
The fund will enhance transparency and accountability for basic education and primary health care in addition to improving recruitments, deployments and better performance management of Teachers.
While appreciating the support of the World Bank, Bagudu elucidated that the Nigerian Constitution is the legal framework that provides the rules and procedures that guides the budget process in addition to empowering the Federal and State governments to make expenditures in the preceding year for the purpose of meeting expenditure necessary to carry on the services of the government.
This expenditure can continue for a period not exceeding six months or until the coming into operation of the law as can be seen on Chapter 5, Part 2 Section 122 of the Nigerian Constitution.
Bagudu explained further that the reforms embarked on by the Bola Ahmed Tinubu’s administration were aimed at developing and implementing economic and tax reforms that will guarantee more functional Public Financial Management (PFM) systems in the country.
According to him, “the economic reforms are necessary decisions to put the Nigerian economy on the right track.”
He assured the IMF Team that though Nigeria is experiencing a number of challenges such as hardship of citizens as a result of removal of fuel subsidy, floating of foreign exchange, electricity reforms that distributed citizens into bands, Nigeria is on course to economic recovery.
The Minister appreciated the willingness of the IMF to support Nigeria but however called for more support in the area of resource mobilization from multinational partners in order for government to provide developments in all sectors of the economy.
Earlier, the International Monetary Fund (IMF) Mission Chief for Nigeria Mr. Axel Schimmelpfennig said he was in the country to have interactions with the Minister on the workings of the Nigerian budgeting process with particular emphasis on the simultaneous implementation of the 2023/2024 budgets and supplementary budgets in the same year in preparation for the publication of the 2025 annual report of the World Bank.
Schimmelpfennig welcomed the tax reforms of the Federal Government as increased revenue generation will ensure more developments for Nigerian citizens and thus promised the country of more IMF support for Nigeria’s developmental needs.
The Permanent Secretary, Dr. Vitalis Emeka Obi mni, briefed the team on the Ministry’s role in coordinating Nigeria’s development planning and budgeting processes.
He emphasized that 2025 promises to be a year of more rapid investments.
Signed
Osagie Jacobs J.I (Mrs.)
Director Information
