The World Bank Group has approved a $1.5 billion package to help build a resilient recovery post-COVID-19 in Nigeria, the bank’s statement issued on Tuesday in Washington D.C. said.

Along with the package are discussions on a new five-year Country Partnership Framework (CPF) from 2021 to 2024.

It said that Nigeria was at a critical juncture and with the sharp fall in oil prices as a result of COVID-19, the economy was projected to contract by over four percent in 2020.

This, it said, would plunge the country into its deepest recession since the 1980s.

“Government revenues could fall by more than 15 billion dollars this year and the crisis will push an additional five million Nigerians into poverty in 2020.

“The 1.5 billion dollars was approved for the Nigeria COVID-19 Action Recovery and Economic Stimulus – Programme for Results (Nigeria CARES) and the State Fiscal Transparency, Accountability and Sustainability Programme for Results (SFTAS) Additional Financing projects.

“The Nigeria CARES programme will help increase access to social transfers and basic services and provide grants to poor and vulnerable households.

“It will also strengthen food supply chains for poor households while facilitating recovery and enhancing capabilities of MSMEs,” it stated.

Meanwhile, for the SFTAS additional financing programme, it said that building on the progress made across 36 states, the original SFTAS programme would be expanded and scaled up in response to COVID-19.

“The additional financing will help meet the financing gap in the Programme Expenditure Framework, due to the sharp reduction in government revenues associated with the crisis.

“It will help increase the efficiency in spending, strengthen revenue mobilisation and enhance accountability and transparency in public resource management to further strengthen state-level COVID-19 response.

“Both projects are financed through an International Development Association (IDA) credit of 750 million dollars each,” the bank said.

The Bank said it was taking broad, fast action to help developing countries strengthen their pandemic response.

“It is doing this by supporting public health interventions, working to ensure the flow of critical supplies and equipment and helping the private sector continue to operate and sustain jobs.

“It is making available up to 160 billion dollars over a 15-month period ending June 2021, to help more than 100 countries protect the poor and vulnerable, support businesses and bolster economic recovery.

“This includes 50 billion dollars of new IDA resources through grants and highly concessional loans and 12 billion dollars for developing countries to finance the purchase and distribution of COVID-19 vaccines,” it stated.