The Federal Government of Nigeria is set to begin repaying a $500 million concessional loan from the International Development Association (IDA) between 2029 and 2054.
The loan was secured under the Nigeria Primary Healthcare Provision Strengthening (HOPE-PHC) Programme, aimed at improving primary healthcare services, particularly in maternal and child health, emergency care, and pandemic preparedness.
The repayment will occur biannually, on April 15 and October 15, with an annual interest rate of 1.65% between 2029 and 2049, increasing to 3.4% from 2049 to 2054.
The loan also includes a 0.5% commitment charge on unwithdrawn funds and a 0.75% service charge on withdrawn balances. The total repayment cost could fluctuate due to currency conversion changes.
The funds will be managed by the Federal Ministry of Health and Social Welfare, with oversight from agencies like the National Primary Healthcare Development Agency, the National Health Insurance Authority, and the Nigeria Centre for Disease Control.
State governments will also be involved in implementation through their respective health ministries and boards.
The financing agreement also ties disbursements to specific performance indicators, such as improving healthcare access, expanding emergency care, strengthening Nigeria’s pandemic response, and enhancing digital health infrastructure.
Despite the concessional terms, concerns about Nigeria’s growing external debt and the depreciation of the naira may increase the real cost of repayment in local currency over the 25-year term.
This loan is part of ongoing World Bank support for Nigeria’s economic resilience and health security, with additional loans under negotiation, including a $500 million project for economic stimulus and a $552.2 million education program.
