World Bank to Approve $1.7 Billion Loan for Nigeria’s Economic Recovery

Nigeria Set to Secure $1.7 Billion World Bank Loan for Development Projects.

The Federal Government of Nigeria is on the verge of securing a $1.7 billion loan from the World Bank, with approval expected on September 26, 2024. This significant funding aims to bolster the country’s economic stability and resource mobilization, and will be allocated across three major development projects.

Key Projects to Benefit from the Loan

– Nigeria: Primary Healthcare Provision Strengthening Programme: $500 million to enhance healthcare infrastructure, train medical professionals, and improve service delivery.
– Nigeria Human Capital Opportunities for Prosperity and Equity Governance: $500 million to focus on human capital development by improving education, health, and social protection services.
– Sustainable Power and Irrigation for Nigeria Project: $700 million to support sustainable power generation and irrigation for agriculture and industrial growth.

These projects have successfully reached the negotiation stage, following negotiations between Nigeria’s Finance Ministry and the World Bank. If approved, this will bring Nigeria’s total borrowing from the World Bank in 2024 to $3.95 billion and $6.65 billion under President Bola Tinubu’s administration.

 Implementation and Objectives

The Nigeria Human Capital Opportunities for Prosperity and Equity project aims to improve the quality and accessibility of essential healthcare services, as well as build resilience within the healthcare system. The program will be implemented by various federal ministries, including Health, Education, and Budget and Economic Planning.

The Primary Healthcare Provision Strengthening Programme seeks to fortify Nigeria’s primary healthcare system, prioritizing infrastructure development, healthcare worker training, and enhanced service delivery. The Sustainable Power and Irrigation for Nigeria Project will focus on boosting sustainable energy and irrigation systems, critical for agriculture and industrialization.

 Additional Loan Approvals Expected

Further loan approvals are expected in December 2024, with projects like the Rural Access and Agricultural Marketing Project – Scale Up, set to receive $500 million. Another $500 million loan for the Solutions for Internally Displaced and Host Communities Project is slated for approval in April 2025.

 Nigeria’s External Debt

Currently, Nigeria’s external debt to the World Bank stands at $15.59 billion as of March 31, 2024. This reflects the country’s increasing reliance on external borrowing to support its development projects. Additionally, recent reports indicate that 20 state governments borrowed N446.29 billion in just six months, underscoring the significant financial burden facing Nigeria’s sub-national governments.