The Federal Government is poised to secure a $1.5 billion loan from the World Bank, aimed at supporting critical development sectors and strengthening Nigeria’s economic foundations.
According to the World Bank’s project list, the loan is expected to be approved on September 26, with funds earmarked for healthcare, governance, and infrastructure projects.
The $1.5 billion package will be distributed across three transformative projects, each designed to tackle pressing challenges in Nigeria’s development.
The first initiative, the Nigeria: Primary Healthcare Provision Strengthening Programme, will receive $500 million. This program is intended to address the country’s under-resourced healthcare system, which has struggled to meet the needs of its growing population.
A second tranche of $500 million will be allocated to the Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE) – Governance project, a part of broader efforts to enhance governance and foster economic equity. The project’s total cost is estimated at $700 million, underscoring the scale of investment required to improve human capital in the country.
The third project, Sustainable Power and Irrigation for Nigeria, is a large-scale initiative aimed at bolstering the country’s power and irrigation infrastructure. The World Bank has approved $500 million for this project, though its total cost stands at a staggering $10.75 billion, highlighting the critical need for sustainable infrastructure to support Nigeria’s long-term development.
In addition to the $1.5 billion package, Nigeria is also expected to secure further financial assistance from the World Bank later in the year. On December 16, a $500 million loan is anticipated for the Rural Access and Agricultural Marketing Project – Scale Up, aimed at improving rural infrastructure and boosting agricultural productivity.
Furthermore, a $300 million loan is slated for approval in April 2025 to address the needs of internally displaced persons and host communities.
Nigeria’s growing reliance on international loans, particularly from the World Bank, reflects the government’s strategy to navigate economic challenges and fund key development initiatives.
However, concerns continue to mount over the country’s rising external debt. In recent years, Nigeria has received multiple loans from the World Bank, including $750 million for humanitarian and social reforms and $1.5 billion for economic stabilization efforts.
The loan approvals come as Nigeria grapples with significant fiscal and economic pressures, requiring sustained investments in sectors like healthcare, agriculture, and infrastructure to achieve long-term economic stability.
The latest round of financing is seen as critical to the country’s ability to mobilize resources and drive forward sustainable development initiatives.