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

The Federal Government of Nigeria is poised to receive a new loan from the World Bank, with approval anticipated for $1.7 billion on September 26, 2024. This funding will support three major development initiatives aimed at bolstering the country’s economic stability and resource mobilization capabilities.

The projects include, Primary Healthcare Provision Strengthening Programme $500 million, Human Capital Opportunities for Prosperity and Equity Governance $500 million, Sustainable Power and Irrigation for Nigeria Project $700 million

These initiatives have reached the negotiation stage, indicating successful completion of the appraisal process led by Nigeria’s Minister of Finance in collaboration with the World Bank. If approved, this loan will bring the total loans secured by Nigeria from the World Bank this year to $3.95 billion, totaling $6.65 billion under President Bola Tinubu’s administration.

The Human Capital Opportunities for Prosperity and Equity Governance project will enhance human capital by improving education, health, and social protection services. It aims to improve the quality and utilization of essential healthcare services, with specific focus areas such as the number of women and children receiving essential health services and the readiness of primary healthcare facilities.

The Primary Healthcare Provision Strengthening Programme is designed to reinforce Nigeria’s primary healthcare system by enhancing infrastructure, training healthcare professionals, and improving service delivery. This project will be implemented by the Ministry of Health.

The Sustainable Power and Irrigation for Nigeria Project will target sustainable power generation and irrigation systems, essential for agricultural and industrial growth, under the supervision of the Federal Ministry of Water Resources and Sanitation.

Additionally, two more loan requests are on the horizon: a $500 million allocation for the Rural Access and Agricultural Marketing Project scheduled for approval on December 16, 2024 and the Solutions for the Internally Displaced and Host Communities Project, set for April 8, 2025.

In June, the World Bank approved two significant loan projects totaling $2.25 billion to support Nigeria’s economic stability and vulnerable populations. Thus far, under President Bola Tinubu’s administration, Nigeria has secured $4.95 billion in loans, raising concerns over increasing external debt servicing costs.

As of March 31, 2024, Nigeria’s total debt to the World Bank stands at $15.59 billion, highlighting the ongoing financial challenges faced by the country. Recent reports also reveal that 20 state governors have borrowed a combined total of N446.29 billion in just six months, underscoring the substantial financial burdens at various governmental levels.

Written By; Christopher Emuakpeje

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