The Federal Government is set to secure a new loan worth of $1.7 billion from the World Bank, the funds are intended to strengthen Nigeria’s economic stability and improve its resource mobilization capabilities, and this loan is expected to be approved on September 26, 2024.
The funding will be divided among these main projects, The Nigeria: Primary Healthcare Provision Strengthening Programme, will be allocated $500 million to bolster healthcare infrastructure, train healthcare workers, and enhance service delivery. Similarly, the Nigeria Human Capital Opportunities for Prosperity and Equity Governance project will also receive $500 million, aimed at advancing human capital development through improvements in education, health, and social protection services. Finally, the Sustainable Power and Irrigation for Nigeria Project will be awarded the largest funding amount of $700 million, focused on promoting sustainable power generation and irrigation to support agricultural and industrial growth.
The document indicated that these projects have entered the negotiation phase and are anticipated to receive approval on September 26, 2024.The negotiation stage, the final step in the loan process, shows that Nigeria, represented by the Minister of Finance, has successfully passed the appraisal phase with the World Bank. If approved, Nigeria will secure $3.95 billion in loans this year and a total of $6.65 billion since President Bola Tinubu took office.
Additional loans are expected, with $500 million allocated for the Rural Access and Agricultural Marketing Project by December 2024, and another $500 million for the Solutions for the Internally Displaced and Host Communities Project by April 2025. The World Bank has already approved substantial funding under the Nigeria Reforms for Economic Stabilization to facilitate transformation.
As of March 31, 2024, Nigeria’s external debt to the World Bank has reached $15.59 billion, indicating a growing dependence on external borrowing for development projects, according to the Debt Management Office. Furthermore, 20 state governors have collectively borrowed N446.29 billion in the past six months, underscoring the financial pressures faced by sub-national entities.
