A fresh hope of more development financing for middle and lower income countries, including Nigeria, has been raised, as the World Bank Group’s shareholders overwhelmingly approved a new Paid-in Capital of $13 billion for its subsidiaries- International Bank for Reconstruction and Development (IBRD) and International Finance Corporation (IFC).

The development signals increased opportunities for the middle and lower income countries where the World Bank subsidiaries are either currently executing projects, prospecting one, as well as in discussion for project long term loan financing.

The shareholders endorsed a series of internal reforms, and a set of policy measures that greatly strengthen the global poverty fighting institution’s ability to scale up resources and deliver on its mission in areas of the world that need the most assistance.

The package consists of $7.5 billion paid-in capital for IBRD and $5.5 billion paid-in capital for IFC, through both general and selective capital increases, as well as a $52.6 billion callable capital increase for IBRD.

The boost in capital, according to the bank, will be augmented by a broad range of internal measures, including operational changes and effectiveness reforms, loan pricing measures, and other policy steps to create an even stronger World Bank Group.

The capital package for IBRD and IFC agreed will build on the strong commitment of contributors to International Development Association (IDA), as demonstrated in the IDA18 replenishment, the successful launch of IDA in the capital market, and strengthened Multilateral Investment Guarantee Agency (MIGA) financial capacity.

Following the approval, the combined financing arms of the World Bank Group are expected to reach an average yearly capacity of nearly $100 billion between 2019 and 2030, benefiting all the Group members across the income spectrum.

World Bank Group President, Jim Yong Kim, said: “Through the historic agreement endorsed today, our shareholders have clearly demonstrated a renewed confidence in global cooperation, and we greatly appreciate this strong support from our member countries.

“This boost in capital was essential for us to advance our efforts to mobilize additional finance for development to meet the aspirations of the people we serve. Our shareholders have asked the Bank Group to step up our leadership role in addressing the multiple overlapping challenges of our time, and this capital package allows for greater responsiveness to risks to global stability and security, particularly in poorer countries and fragile states.”

The package endorsed by the Development Committee follows through on shareholders’ commitment for the World Bank Group to better assist all client countries in addressing global challenges, while deploying scaled-up assistance to areas that most need financing.

Across client groups, the World Bank Group will be able to support drivers of long-term sustainable growth—including investments in human capital and resilience.

The package also puts forward a robust commitment by the World Bank Group to further strengthen its operational model and effectiveness.