The federal government of Nigeria is set to receive a $500 million loan from the World Bank to finance the Human Capital Opportunities for Prosperity and Equity (HOPE) project. The initiative aims to boost the availability and financing of basic education and primary healthcare across Nigerian states, while also improving transparency, accountability, and the management of teacher recruitment and performance.
The Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, made this announcement during a courtesy visit from the International Monetary Fund (IMF) Mission Chief for Nigeria, Axel Schimmelpfennig.
During the meeting, Bagudu commended the World Bank for its continued support, while highlighting the legal framework that supports Nigeria’s budgeting process. He pointed out that Chapter 5, Part 2, Section 122 of the Nigerian Constitution permits both federal and state governments to make expenditures for up to six months into a new fiscal year, pending the passage of a new budget.
Bagudu also discussed the ongoing economic reforms under President Bola Ahmed Tinubu’s administration. He explained that these reforms are focused on developing and implementing monetary and tax policies designed to create a more efficient and functional Public Financial Management (PFM) system. He says, “The economic reforms are necessary decisions to put the Nigerian economy on the right track”.
Furthermore, he assured the IMF team that despite the challenges Nigeria is facing, including fuel subsidy removal, foreign exchange floating, and electricity reforms, the country is on track for economic recovery. He expressed gratitude for the IMF’s support and urged for greater assistance in resource mobilization from international partners to help develop all sectors of the economy.
Schimmelpfennig stated that his visit was part of the IMF’s assessment of Nigeria’s budgeting process, focusing on the concurrent implementation of the 2023 and 2024 budgets, along with supplementary budgets, as the World Bank prepares its 2025 annual report. He also praised the federal government’s tax reforms, noting that increased revenue generation would drive greater development for Nigerians.
Amid its economic challenges, Nigeria’s collaboration with global institutions like the World Bank and IMF is crucial for achieving its development goals.
