The World Bank is considering approving $1.13 billion in loans for Nigeria before the end of March 2025 as part of ongoing efforts to support the country’s economic resilience, health security, and education reforms.
According to the details published on the World Bank’s website, three key projects for Nigeria are currently under negotiation, with approval expected this month.
One of these projects, the Accelerating Nutrition Results in Nigeria 2.0 program, valued at $80 million, is slated for approval by March 31, 2025. The initiative aims to improve nutrition outcomes, especially for vulnerable groups, by expanding access to essential dietary support and tackling malnutrition.
Another project under negotiation is the Community Action for Resilience and Economic Stimulus Programme, valued at $500 million, with approval anticipated by March 24, 2025. This initiative aims to support community-driven projects that foster economic resilience and growth.
Similarly, the HOPE for Quality Basic Education for All program, with a proposed funding of $552.2 million, is also in the negotiation phase and is expected to receive approval by March 31, 2025. This initiative focuses on improving basic education by addressing infrastructure gaps, enhancing teacher training, and expanding access to quality education nationwide.
The approval of these loans comes at a critical time as Nigeria faces economic challenges, including foreign exchange shortages, fiscal deficits, and rising debt servicing burdens.
Reports indicate that the Federal Government is set to secure six new loans totaling $2.23 billion from the World Bank in 2025, reinforcing the institution’s ongoing support for Nigeria’s economic and structural reforms.
According to data from the World Bank’s official website, this will bring Nigeria’s total approved loans to $9.25 billion over three years, highlighting the country’s increasing dependence on multilateral funding to sustain key sectors such as infrastructure, healthcare, education, and economic resilience.
An analysis of Nigeria’s loan approvals from the World Bank since 2023 under President Bola Tinubu’s administration has steadily increased. In 2023, the World Bank approved $2.7 billion in funding, targeting renewable energy, women’s empowerment, education, and the power sector. By 2024, loan commitments surged to $4.32 billion, driven by Nigeria’s urgent need for financial assistance to address fiscal challenges and mounting public debt.
While the proposed World Bank loans could provide much-needed fiscal relief, concerns persist over Nigeria’s rising debt burden. Recent data from the Central Bank of Nigeria shows that the country has spent $5.47 billion on external debt servicing in the past 14 months, putting pressure on foreign reserves.
Finance Minister Wale Edun has emphasized a shift away from excessive borrowing, focusing instead on revenue generation, concessional loans, and strategic investments to fund national development.
The steady growth in the World Bank’s financial commitments to Nigeria, from $2.7 billion in 2023 to $4.32 billion in 2024 and the anticipated $2.23 billion in 2025 highlights Nigeria’s continued reliance on concessional financing for economic reforms and public sector investments.
