Abuja, Nigeria – The World Bank is preparing to approve three significant loan projects for Nigeria in 2025, totaling $1.65bn, aimed at tackling critical developmental challenges across the country.
The loans will focus on addressing the needs of internally displaced persons (IDPs), improving education, and enhancing nutrition.
Details obtained from the World Bank’s official website indicate that the loans are part of efforts to support Nigeria’s economic recovery, particularly in vulnerable sectors requiring urgent intervention.
The first loan, titled Solutions for the Internally Displaced and Host Communities Project, is valued at $300m and is scheduled for approval on April 8, 2025. The project aims to provide sustainable solutions for internally displaced persons and their host communities by addressing social and economic challenges.
The second project, HOPE for Quality Basic Education for All, will receive $553.8m in funding, with approval set for March 20, 2025. This initiative seeks to improve access to basic education in Nigeria, focusing on quality and inclusion.
The third and largest loan, valued at $800m, is for the Accelerating Nutrition Results in Nigeria 2.0 project. The World Bank will hold a decision meeting for this project on February 20, 2025. This initiative is designed to enhance nutrition outcomes, particularly for vulnerable populations.
The proposed $1.65bn financing highlights the World Bank’s continued commitment to supporting Nigeria’s reform agenda and addressing pressing developmental needs. Approval for these projects is contingent upon Nigeria meeting key project prerequisites and ensuring accountability in implementation.
Rising Loans Under Tinubu’s Administration
Under President Bola Tinubu’s administration, Nigeria has secured $6.95bn in loans from the World Bank in the past 18 months. The most recent approval, a $500m loan granted on December 13, 2024, will fund the Rural Access and Agricultural Marketing Project—Scale Up, which seeks to improve rural infrastructure, agricultural market access, and social cohesion in rural areas.
This marks the 10th loan project approved under Tinubu’s leadership.
Other notable loans include:
- $750m Power Sector Recovery Performance-Based Operation (June 2023)
- $500m Nigeria for Women Program Scale-Up (June 2023)
- $700m Adolescent Girls Initiative for Learning and Empowerment (September 2023)
- $750m Distributed Access through Renewable Energy Scale-Up Project (December 2023)
- $2.25bn Economic Stabilization and Resource Mobilization Programs (June 2024)
- $1.57bn Financing Package for education, healthcare, and water management (September 2024)
The World Bank’s share of Nigeria’s external debt currently stands at $16.32bn, with the International Development Association (IDA) accounting for the bulk of this figure.
Debt Service Pressure on Nigeria
Amid mounting external debt, Nigeria spent $3.58bn servicing its foreign debt in the first nine months of 2024, representing a 39.77% increase compared to the $2.56bn spent in the same period in 2023. Data from the Central Bank of Nigeria (CBN) highlights the rising fiscal strain on the country.
The World Bank’s latest International Debt Report also revealed that developing countries spent a record $1.4tn on foreign debt servicing in 2023, driven by surging interest rates. Vulnerable economies, particularly those eligible for IDA loans, were most affected by the financial strain, which continues to impact critical sectors such as health, education, and environmental programs.
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