The World Bank has granted a $200m (N39.4bn) credit facility to Lagos State to support reforms in the state.
Institution approves N39.4bn loan for Lagos reforms
The fund will be used to support reforms relating to fiscal sustainability, budget planning, budget execution and the investment climate in the state.
This was disclosed via a statement released by the bank on Wednesday, July 1, 2015.
The financial institution expects the loan to help sustain the state’s recent economic growth and poverty reduction, while helping it to continue to deliver social services to the expanding population, according to the statement.
“The operation’s focus on furthering improvements in the transparency of the budget system, effectiveness of public expenditures, and the business climate will help sustain the pace of economic growth and thus the state’s positive momentum towards income equality and the delivery of public services,” World Bank Task Team Leader for the project, Jariya Hoffman said.
“This operation is designed to assist Lagos State in its quest to continue its recent success in spite of the challenges brought on by rapid economic and population growth,” World Bank Country Director for Nigeria, Marie-Francoise Marie-Nelly said.
According to the bank, the operation will enhance the state government’s fiscal sustainability by anchoring the budget on a framework that accounts for key fiscal risks and improves revenue collection.
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