The World Bank is set to approve a $1.13bn loan package for Nigeria before the end of March 2025, aimed at supporting the country’s economic stability, health security, and educational reforms.
According to details on the World Bank’s website, three major projects are under negotiation, with approval expected later this month.
One of the projects, the Accelerating Nutrition Results in Nigeria 2.0 programme, valued at $80m, focuses on improving nutrition, particularly for vulnerable groups, by enhancing access to essential dietary support and reducing malnutrition. It is expected to be approved by March 31, 2025.
Another project, the Community Action for Resilience and Economic Stimulus Programme, with a commitment of $500m, is designed to boost community-driven initiatives and strengthen economic resilience. This project is slated for approval by March 24, 2025.
The HOPE for Quality Basic Education for All programme, which aims to improve basic education quality by addressing infrastructure gaps, enhancing teacher training, and improving accessibility, is set for approval by March 31, 2025. It has a proposed funding of $552.2m.
These loan approvals come as Nigeria faces persistent economic challenges, including foreign exchange constraints, fiscal deficits, and rising debt service obligations.
The Federal Government is anticipated to secure six new loans worth $2.23bn from the World Bank in 2025, continuing efforts to support the country’s economic and structural reforms.
These loans will bring Nigeria’s total approved loans over the last three years to $9.25bn, underscoring the country’s increasing reliance on multilateral financing for critical sectors, including infrastructure, healthcare, education, and economic stability.
World Bank loan approvals for Nigeria have seen a significant uptick. In 2023, Nigeria secured $2.7bn, with funding directed toward renewable energy, women’s empowerment, education, and power sector projects. In 2024, loan approvals surged to $4.32bn, driven by the need for fiscal stabilization amid growing debt.
Despite the potential relief from these loans, concerns remain about Nigeria’s rising debt burden. Data from the Central Bank of Nigeria shows $5.47bn spent on external debt servicing in the last 14 months, straining foreign reserves.
Finance Minister Wale Edun emphasized that the government is focused on alternative funding sources, such as revenue generation and strategic investments, rather than relying heavily on commercial loans.
Nevertheless, Nigeria’s dependence on concessional financing, as reflected in the World Bank’s growing commitments, remains a key aspect of the country’s strategy to implement necessary reforms.
Nigeria also continues to rank as the third-largest debtor to the World Bank’s International Development Association, despite a slight decrease in its exposure as of December 2024.
The World Bank’s financial statements show Nigeria’s debt to the IDA at $16.8bn by the end of 2024, with the majority of this debt owed to the IDA itself.
