Fakoyejo OlalekanThe International Development Association (IDA) plans to disburse 70 percent of its $93 billion global fund in Africa, and Nigeria will receive the largest cut, a statement obtained on Thursday disclosed.
IDA is a World Bank member, and also a global credit institution that financially supports world’s poorest developing countries with loans and grants. IDA recently launched the $93 billion fund at its summit in Dakar, Senegal, on July 7, 2022.
The funds is coming at a period President Muhammadu Buhari said developing countries are disbursing vital public financial resources to finance external debt servicing, rather than critical developmental needs.
In a statement quoting the Nigerian leader, Garba Shehu, the Senior Special Assistant to the President, said Buhari commended IDA for what it termed the largest financial package, which will benefit Agriculture and Food Security, Human Capital, Climate Change Adaptation, Bridging the Gender Gap, Job Creation, Digital and Technological Innovation, among others.
Explaining the importance of the IDA funds at the summit, President Buhari stated that Africa was placed in a bad financial state by the COVID-19 pandemic, and the Russia and Ukraine war has worsened the challenges of developing countries.
He highlighted the challenges of the continent, which includes, “prolonged severe food crisis, dwindling government revenue, rising levels of unemployment, widening infrastructural needs over the past three years and the consequences of a preponderant debt burden, in efforts to mitigate these problems.”
Part of his statement reads, “I wish to therefore call for concerted global efforts to mitigate and sustain food systems. These efforts must involve key stakeholders, including Governments, Farmers, Investors, Multilateral Organizations, Regional Bodies, International Financial Institutions, Private Partners and Civil Societies.
“As African countries continue to grapple with the devastating impact of the COVID-19 pandemic and now the Russian-Ukraine war, the continued support from the World Bank Group, particularly from the IDA is critical to help us meet financial needs.”
Speaking on Nigeria’s plan amid the current economic challenges, Buhari said, “our focus is on the transformative scale-up of industrialisation, to be driven by Backward Integration and Export Development based on value-addition to key commodities and access to new markets.”
He believes this will build the resilience of Nigeria’s economy and drive jobs-rich growth. And for the country to achieve these, Buhari stated, “we must continue to build partnerships and global solidarity that will address the challenges of the most vulnerable population and look forward to stronger collaboration among members of the International Development Association.”
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