Nigeria is in discussions with the World Bank to secure two new loans totaling $580 million, with approval expected in March 2025. The funding will support initiatives aimed at improving education and nutrition across the country. According to the World Bank’s project pipeline, the HOPE for Quality Basic Education for All and Accelerating Nutrition Results in Nigeria 2.0 programs are set to address critical gaps in human capital development.
The HOPE for Quality Basic Education for All program will receive $552.18 million, with $500 million from the World Bank and an additional $54 million from other sources. This initiative aims to improve early childhood education, primary and junior secondary schooling, and expand access to learning resources. It is designed to reduce Nigeria’s high number of out-of-school children, currently estimated at 17 million. The program will be implemented by the Federal Ministry of Finance, the Federal Ministry of Education, and the Universal Basic Education Commission.
The second project, Accelerating Nutrition Results in Nigeria 2.0, will secure $80 million to address malnutrition and food insecurity, particularly among pregnant women, lactating mothers, adolescent girls, and children under five. It will be implemented through primary healthcare facilities and community-based programs, incorporating nutrition-smart agriculture to enhance food security and dietary diversity. This follows an initial loan of $232 million approved in 2018 for the first phase of the project, which faced challenges, leading to adjustments and cancellations.
Nigeria’s increasing reliance on external loans has sparked concerns among economists and financial analysts. Under President Bola Tinubu’s administration, the country has secured $6.95 billion in World Bank loans within the last 18 months. Data from the Debt Management Office reveals that Nigeria’s total debt to the World Bank stands at $17.32 billion, accounting for over 39 percent of the nation’s external debt. While the government argues that these loans are crucial for development, the rising cost of debt servicing remains a major fiscal concern.
Despite seeking additional loans, the Federal Government has reaffirmed its commitment to reducing reliance on external borrowing. Finance Minister Wale Edun emphasized that the administration is prioritizing private-sector-led growth to strengthen Nigeria’s economic foundation. The government aims to explore alternative financing models beyond traditional multilateral loans, focusing on fiscal responsibility, investment-driven development, and long-term economic stability.
Source: Punch