World Bank approves $200m loan for Lagos reforms

The World Bank group has approved $200m credit to Lagos
State to support a range of reforms in regards to fiscal
sustainability, budget planning, budget execution and the
investment climate in the state.
A statement issued by World bank on Wednesday said the
facility would help sustain the state’s recent economic
growth and poverty reduction, while delivering social
services to the expanding population.
The funds from the International Development Association
segment of the World Bank Group supports the Third Lagos
State Development Policy Operation and is the last of a
series of two development policy operations, which aim to
improve public finances and investments in a fiscally
sustainable manner.
The bank said that Lagos State has achieved significant
economic growth, improved its infrastructure and services,
significantly reduced crime, and brought millions of people
out of poverty within the last 10 years.
The World Bank Task Team Leader for the project, Jariya
Hoffman, said:
“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,” he said.
The World Bank Country Director for Nigeria, Marie-Francoise
Marie-Nelly, 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.
“As an urban agglomeration that has reduced income
inequality during double digit economic growth, Lagos is an
example of inclusive growth in Nigeria. If the Lagos
experience is sustained, there is strong potential for this
type of inclusive growth to spread to other parts of Nigeria.”
According to the bank, the operation will improve the state
government’s fiscal sustainability by anchoring the budget
on a framework that accounts for key fiscal risks and
improves revenue collection. Support for adopting a new
approach to budget planning and preparation will ensure
adequate allocation of budgetary resources to social services
such as education and health.
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