The World Bank has already approved significant loans to Nigeria in 2024, including $2.25 billion in June for economic stabilization and resource mobilization reforms.
Abuja, Nigeria – The World Bank is set to approve a fresh $1.7 billion loan for Nigeria, with the funds earmarked for three key development projects aimed at boosting the country’s economic stability and resource mobilization.
According to official documents obtained by REPORT AFRIQUE, the loan approval is expected on September 26, 2024.
The financing will be split among these key projects:
- Primary Healthcare Provision Strengthening Programme – $500 million
- Nigeria Human Capital Opportunities for Prosperity and Equity Governance – $500 million
- Sustainable Power and Irrigation for Nigeria Project – $700 million
These projects are in the final negotiation stage, having passed the appraisal phase between Nigeria, represented by the Minister of Finance, and the World Bank. If approved, this would bring Nigeria’s total loan receipts from the World Bank to $3.95 billion for 2024 and a cumulative $6.65 billion under President Bola Tinubu’s administration.
Project Breakdown
The Primary Healthcare Provision Strengthening Programme aims to improve Nigeria’s healthcare system by enhancing infrastructure, training healthcare professionals, and boosting service delivery. The project will be overseen by the Federal Ministry of Health.
The Human Capital Opportunities for Prosperity and Equity Governance project, with a proposed $500 million funding, focuses on enhancing human capital through better education, health, and social protection services. It aims to improve the quality and utilization of essential healthcare services, particularly for women and children. The project will be implemented by the Federal Ministries of Budget, Economic Planning, Health, and Education.
The largest chunk of the loan, $700 million, will go to the Sustainable Power and Irrigation for Nigeria Project, which focuses on sustainable power generation and irrigation, crucial for agricultural and industrial development. This will be implemented by the Federal Ministry of Water Resources and Sanitation.
Future Loan Approvals
Further loans are on the horizon, with $500 million earmarked for the Rural Access and Agricultural Marketing Project by December 2024, and an additional $500 million for the Solutions for the Internally Displaced and Host Communities Project by April 2025.
Rising Debt Concerns
The World Bank has already approved significant loans to Nigeria in 2024, including $2.25 billion in June for economic stabilization and resource mobilization reforms. Nigeria has so far received $751.88 million of these funds.
Under President Tinubu’s administration, Nigeria’s debt stock has surged, sparking concerns over the nation’s growing external debt servicing costs. As of March 31, 2024, Nigeria’s debt to the World Bank stood at $15.59 billion, according to the Debt Management Office.
In addition, 20 state governors have borrowed a total of N446.29 billion in the past six months, further highlighting the financial strain on sub-national entities.
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