The World Bank has approved Nigeria’s loan request of $1.5 billion, as Africa's most populous nation and largest economy battles a coronavirus-induced recession.

In a statement issued on Tuesday, December 15, the Bretton Woods institution said the loan facility is a five-year Country Partnership Framework (CPF) that will last till 2024.

“This country partnership framework will guide our engagement for the next five years in supporting the government of Nigeria’s strategic priorities by taking a phased and adaptive approach,” said Shubham Chaudhuri who is the World Bank's Country Director for Nigeria.

“To realize its long-term potential, the country has to make tangible progress on key challenges and pursue some bold reforms. Our engagement will focus on supporting Nigeria’s efforts to reduce poverty and promote sustained private sector-led growth.”

$1.5 billion was also tied to two projects in Nigeria, namely: Nigeria COVID-19 Action Recovery and Economic Stimulus – Program for Results (Nigeria CARES) and the State Fiscal Transparency, Accountability and Sustainability Program for Results (SFTAS).

Government revenues have dipped by 60 percent in Nigeria due to a crash in global oil prices and the COVID-19 pandemic.

The President Muhammadu Buhari-led federal government has also ceased the payment of subsidy on petrol because it can no longer afford to do so.

Nigeria officially slipped into a recession in November.