The World Bank has provided a $1.5 billion foreign loan to Nigeria to support the federal government's efforts in implementing fuel subsidy removal and tax reforms. This initiative is part of the Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing program.

According to a recent World Bank document, the loan was approved on June 13, 2024, and disbursed in two tranches. The first tranche of $750 million, provided by the International Development Association (IDA), was disbursed on July 2, 2024, with a 12-year repayment period and a six-year grace period. The second tranche, also $750 million, was issued in November 2024 by the International Bank for Reconstruction and Development (IBRD), featuring a 24-year repayment period and an 11-year grace period.

The World Bank noted that Nigeria met the stringent conditions required for loan approval, including key reforms such as:

• Subsidy removal: the deregulation of the fuel market, allowing retail prices to be determined by market conditions.
• Exchange rate harmonization: Addressing currency distortions to foster economic stability.
• Tax policy reforms: The government submitted a comprehensive tax reform bill to the National Assembly on October 3, 2024. This reform package aims to revamp the VAT regime, simplify tax policies, and enhance tax administration.

However, these reforms have been met with mixed reactions. While they have garnered praise for addressing structural economic challenges, they have also sparked criticism due to their impact on the cost of living.

Fuel prices have risen fivefold, and the unification of the exchange rate has led to significant inflation. In November 2024, headline inflation reached 34.60 percent, with food inflation climbing to 39.93 percent. These increases have strained household budgets, despite the government's introduction of palliative measures, such as disbursing N25,000 to fewer than two million households.

Additionally, the Compressed Natural Gas (CNG) Initiative, designed to provide a cheaper alternative to fuel, is yet to be fully implemented, leaving many Nigerians without immediate relief.

The World Bank emphasized the government's commitment to avoiding deficit monetization, relying instead on standard debt instruments to finance the budget deficit. While the reforms are expected to stabilize the economy in the long run, their immediate impact continues to fuel debates across Nigeria.

Embattled human rights activist and lawyer, Dele Farotimi, has declared his readiness to face his ongoing legal challenges with renewed vigor.

On Sunday, Farotimi shared a defiant message via his X account, emphasizing his determination to confront his adversaries. He described himself as prepared and strengthened for the battles ahead, both legally and spiritually.

“I am strong enough to rumble unruffled against principalities and powers, but I am human enough to retain the capacity to shed tears of joy in appreciation of the grace of God, expressed in the concerted efforts of fellow victims,” he wrote.

Farotimi further stated, “My battle axes are newly sharpened, my guns primed. I am ready for war. My resolve was NEVER tested, but I was waiting for the next round of the fight to commence. I knew that the first round had been lost by those responsible for my imprisonment.”

This declaration comes weeks after a Chief Magistrate Court in Ado Ekiti granted him bail set at N30 million. The activist had been arrested and detained over allegations of defamation against Senior Advocate of Nigeria and founder of Afe Babalola University, Ado Ekiti (ABUAD), Afe Babalola.

Farotimi was eventually released after fulfilling his bail conditions, but his comments suggest he is ready to pursue the next phase of his legal defense.

The case has drawn significant attention, with many expressing support for Farotimi and his advocacy for justice and human rights.