The World Bank is set to approve $632 million in loans to Nigeria, focusing on nutrition and education. Additional loans are pending, bringing total approvals to $9.25 billion in three years. Concerns about rising debt and efficient fund management persist amidst the approvals.
The World Bank is poised to approve loans totaling $632 million to Nigeria, covering essential areas such as nutrition and education. This includes $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project and $552 million to enhance basic education through the HOPE program. These approvals contribute to the World Bank’s ongoing commitment to supporting Nigeria’s developmental goals, particularly in healthcare and education.
In a related context, a $500 million loan to support Nigeria’s Community Action for Resilience and Economic Stimulus Programme was previously approved on March 28, 2025. This initiative aims to assist households impacted by economic downturns through grants and support for vulnerable populations, thus strengthening community resilience amidst inflation and high living costs.
Despite these loans, Nigeria faces delays in disbursement from earlier approved funds, including $315 million from an $800 million loan for the National Social Safety-Net Program Scale Up. The slow release of funds relates to concerns of fraud within the program, prompting investigations and the temporary suspension of some cash transfers.
Nigeria is on track to secure an additional six loans worth approximately $2.23 billion from the World Bank in 2025, bringing the total approved loans over three years to $9.25 billion. This influx of loans underscores Nigeria’s increasing reliance on multilateral funding for infrastructure, healthcare, education, and economic resilience amid a challenging fiscal environment.
Statistics reveal that close to $7.45 billion in loans have been secured from the World Bank under President Bola Tinubu’s administration. However, this raises concerns regarding Nigeria’s rising debt levels, particularly with approximately $17.32 billion owed to the World Bank comprising a significant portion of the country’s external debt.
The World Bank’s impending approval of $632 million in loans to Nigeria highlights the country’s strategic need for financial support amid rising debt concerns. While these loans aim to address pressing challenges in nutrition and education, the government also faces scrutiny regarding the management and utilization of borrowed funds. Emphasis on strategic borrowing and efficient resource management is crucial as Nigeria navigates its economic landscape with increasing dependency on external financing.
Original Source: punchng.com
