WORLD BANK TO GRANT NIGERIA’S $632M LOAN REQUEST TODAY
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The World Bank is set to approve $632 million in new loans for Nigeria today (Monday) despite concerns over the country’s rising debt, according to The PUNCH.
The funding will support key areas, including nutrition and basic education. Information from the World Bank’s website on Sunday revealed that the loans include $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project and $552 million for the HOPE for Quality Basic Education for All program. These projects are in the final negotiation phase and are expected to receive approval later today.
This initiative aligns with the World Bank’s broader strategy to support Nigeria’s development in healthcare, education, and community resilience. The loans aim to improve nutrition outcomes and expand access to quality education for Nigerian children.
Meanwhile, last Friday, the World Bank approved a separate $500 million loan for Nigeria’s Community Action for Resilience and Economic Stimulus Programme. The approval on March 28, 2025, is intended to address economic challenges by providing grants, food security services, and livelihood support for vulnerable households and businesses. The initiative focuses on mitigating economic hardships, boosting food security, and expanding economic opportunities for struggling communities.
This approval comes amid delays in the disbursement of funds from a previous $800 million loan for the National Social Safety-Net Program Scale Up. So far, Nigeria has received only $315 million from this loan, which was approved in December 2021, with further disbursements stalled due to fraud-related issues.
President Bola Tinubu had launched a social safety net program to distribute N25,000 to 15 million households over three months as part of efforts to alleviate poverty. However, the initiative, managed by the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, was suspended due to alleged misappropriation. Former humanitarian minister Betta Edu was suspended over the alleged diversion of N585 million, while her predecessor, Sadiya Umar-Farouq, is under investigation for allegedly laundering N37.1 billion. The World Bank has imposed sanctions on individuals and businesses found guilty of fraud under these programs.
Looking ahead, Nigeria is expected to secure six additional loans worth $2.23 billion from the World Bank in 2025 to support digital infrastructure, healthcare, education, nutrition, and community resilience. This would bring total World Bank-approved loans for Nigeria to $9.25 billion over three years, reflecting a growing dependence on multilateral financing.
Under President Tinubu’s administration, the World Bank has approved 11 loan projects, totaling $7.45 billion in less than two years. Data from the Debt Management Office shows that, as of Q3 2024, Nigeria owes the World Bank $17.32 billion, with the bulk of this debt—$16.84 billion—owed to the International Development Association.
Despite the fiscal relief these loans may provide, concerns persist over Nigeria’s mounting debt burden. Central Bank of Nigeria data indicates that the country has spent $5.47 billion on external debt servicing in the past 14 months, putting pressure on its foreign reserves. Finance Minister Wale Edun has emphasized the government’s focus on alternative funding sources, including revenue generation, concessional loans, and strategic investments, rather than accumulating more debt.
“We are at that optimisation stage, where there is less focus on borrowing, particularly from the commercial markets, which is quite high. We are focusing more on optimising assets and attracting private sector investment, whether domestic or foreign,” Edun said.
However, the consistent growth in the World Bank’s financial commitments to Nigeria, from $2.7bn in 2023 to $4.32bn in 2024, and the anticipated $2.23bn in 2025, highlights the country’s increasing dependence on concessional financing to drive structural reforms and public sector investments.
As Nigeria continues to navigate its debt challenges, experts emphasise the importance of efficient fund utilisation and transparent project execution to ensure that these loans yield meaningful economic and social benefits.
on Sunday, development economist Dr Aliyu Ilias expressed concerns about Nigeria’s borrowing approach, stating that while borrowing itself is not inherently bad, it has become problematic given the country’s current economic situation.
“I think borrowing itself is not bad, but at the point Nigeria is now, borrowing is becoming a bad thing,” he said.
Ilias pointed out that borrowing was heavily criticized during former President Muhammadu Buhari’s administration, and many had expected the current government to refrain from accumulating more debt.
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