World Bank To Approve Nigeria $632 Million Loan Request Today

World Bank To Approve Nigeria $632 Million Loan Request Today

The World Bank is set to approve new loans totaling $632 million for Nigeria today (Monday), despite growing concerns over the country’s increasing debt profile. These loans aim to support key sectors such as nutrition improvement and basic education.

According to information from the World Bank’s website, the two loans expected to receive approval include $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project and $552 million for the HOPE for Quality Basic Education for All program. Both projects are currently in the negotiation stage and are anticipated to be approved later today. These loans align with the World Bank’s broader strategy to support Nigeria’s development, focusing on healthcare, education, and community resilience….READ MORE….

The funds are intended to enhance nutrition outcomes and improve access to quality education for children in Nigeria. Meanwhile, the World Bank had previously approved a $500 million loan last Friday to support Nigeria’s Community Action for Resilience and Economic Stimulus Programme. Approved on March 28, 2025, this funding aims to address Nigeria’s economic challenges by providing livelihood support, food security services, and grants for vulnerable households and businesses.

The initiative, formally titled the NIGERIA: Community Action (for) Resilience and Economic Stimulus Programme, seeks to mitigate the effects of economic downturns by offering financial assistance to struggling communities. The program specifically targets the most affected populations, providing grants to households and small enterprises.

Despite this progress, there have been delays in disbursing funds for a previous loan aimed at assisting poor and vulnerable Nigerians. Out of the $800 million approved for the National Social Safety-Net Program Scale Up, only about $315 million has been disbursed, largely due to allegations of fraud within the program.

In response to these issues, President Bola Tinubu launched a social safety net initiative, pledging to distribute N25,000 to 15 million households for three months in observance of the 2023 International Day for the Eradication of Poverty. However, the program was suspended for investigation following allegations of mismanagement.

Additionally, former Minister of Humanitarian Affairs Betta Edu was suspended over the misappropriation of N585 million meant for palliative distribution, while her predecessor, Sadiya Umar-Farouq, faces investigations for alleged laundering of N37.1 billion during her tenure. The World Bank also imposed sanctions on individuals and businesses implicated in fraudulent activities related to the program.

The World Bank’s recent financial commitments to Nigeria reflect a growing reliance on concessional financing to support structural reforms and public investments. Since 2023, under President Bola Tinubu’s administration, the World Bank has approved around 11 different loan projects, totaling $7.45 billion.

However, the rising debt burden remains a concern. Data from the Debt Management Office shows that the World Bank’s share of Nigeria’s external debt amounts to $17.32 billion as of the third quarter of 2024. A significant portion of this debt is owed to the International Development Association (IDA), which accounts for $16.84 billion, representing 39.14% of Nigeria’s total external debt.

Minister of Finance, Wale Edun, has emphasized a strategic shift from borrowing towards revenue generation and attracting private sector investment. He noted that while borrowing itself is not inherently problematic, Nigeria’s current economic situation calls for more sustainable financial strategies.

Economic experts have expressed concerns about the country’s continued dependence on loans. Development economist Dr. Aliyu Ilias stated that while borrowing can be beneficial, Nigeria’s current debt trajectory is alarming. He highlighted that many Nigerians had hoped the current administration would reduce reliance on external debt, following criticisms of the borrowing practices under the previous administration.