The World Bank is on track to approve a total of $1.13 billion in new loans for Nigeria before the end of March 2025. These funds are aimed at strengthening economic resilience, improving health security, and advancing educational reforms in the country.
According to details available on the World Bank's website, three key projects are currently under negotiation, with final approvals expected this month.
One of the projects, the Accelerating Nutrition Results in Nigeria 2.0, valued at $80 million, is expected to be approved by March 31, 2025. This initiative focuses on tackling malnutrition by increasing access to essential dietary support, particularly for vulnerable groups.
Another major project, the Community Action for Resilience and Economic Stimulus Programme, is set to receive a $500 million commitment. Expected to be approved by March 24, 2025, the initiative will provide economic support for community-led projects aimed at strengthening economic stability and growth.
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Additionally, the HOPE for Quality Basic Education for All program is in its final negotiation stage, with a proposed funding of $552.2 million. Scheduled for approval by March 31, 2025, this initiative seeks to address critical gaps in Nigeria's education sector by improving infrastructure, enhancing teacher training, and increasing access to quality education nationwide.
Rising Loan Commitments Amid Economic Challenges
The expected loan approvals come at a time when Nigeria faces significant economic challenges, including foreign exchange constraints, fiscal deficits, and mounting debt servicing obligations.
In a related development, the Federal Government is also seeking an additional $2.23 billion in loans from the World Bank in 2025 to support structural and economic reforms. If approved, this will bring Nigeria's total World Bank loans to $9.25 billion over three years, highlighting the country's increasing reliance on multilateral financing to sustain critical sectors such as infrastructure, healthcare, and education.
Data from the Central Bank of Nigeria reveals that the country has spent $5.47 billion on external debt servicing over the past 14 months, raising concerns over Nigeria's growing debt burden.
However, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has emphasized that the government is prioritizing alternative funding sources, such as revenue generation and private sector investments, to reduce reliance on borrowing.
Despite these assurances, Nigeria remains one of the largest borrowers from the World Bank's International Development Association (IDA), with its outstanding debt standing at $16.8 billion as of December 31, 2024.
As the government continues to secure funding for key sectors, the impact of these loans on Nigeria's long-term economic stability and debt sustainability remains a subject of national debate.
