The World Bank is poised to approve new loans totaling $632 million to Nigeria today, reflecting the country’s urgent need for financial support amid escalating debt concerns. The loans aim to improve nutrition and enhance basic education quality in the country.
According to information from the World Bank, the funding includes $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 negotiation and are expected to receive final approval today.
These loans are part of the World Bank’s comprehensive strategy to support Nigeria’s development goals, focusing on crucial sectors like healthcare, education, and community resilience. The funds are anticipated to significantly aid the government in addressing nutrition challenges and ensuring access to quality education for Nigerian children.
Last week, the World Bank also approved a $500 million loan to support Nigeria’s Community Action for Resilience and Economic Stimulus Programme. This initiative, launched in March 2025, is aimed at assisting households impacted by economic downturns, enhancing food security, and providing grants to vulnerable households and small businesses.
The approval comes during a time when the Federal Government has been working to address issues related to previous funding, including delays in disbursing a loan aimed at supporting low-income Nigerians. Reports indicate that only $315 million of an $800 million loan approved for the National Social Safety-Net Program Scale Up has been disbursed since December 2021, partly due to fraud issues uncovered in the program.
In response to the growing economic challenges, the Federal Government has initiated a social safety net program, promising to distribute ₦25,000 to 15 million households for three months in commemoration of the International Day for the Eradication of Poverty. However, the program’s cash transfers have been suspended for further investigation due to allegations of financial mismanagement.
Concerns about the rising debt burden remain prevalent as Nigeria’s reliance on multilateral loans continues to grow. Cumulatively, the World Bank has approved around $9.25 billion in loans to Nigeria over the past three years, with significant funding designated for infrastructure, healthcare, and education sectors.
As of the third quarter of 2024, Nigeria’s external debt owed to the World Bank stands at approximately $17.32 billion. A considerable portion of this, $16.84 billion, is attributed to the International Development Association.
The Finance Minister highlighted the government’s focus on alternative funding strategies such as revenue generation and attracting private sector investments, aiming to lessen the emphasis on new borrowing, especially from commercial markets.
Experts underline the importance of efficient fund management and transparency in executing these loans to maximize their economic and social benefits. They express concern about the sustainability of Nigeria’s borrowing strategy, suggesting the necessity for a creative and well-planned approach to future borrowing.
