Nigeria has secured a $500 million loan from the World Bank to address its ongoing economic challenges through the Community Action for Resilience and Economic Stimulus Program. The loan, approved on March 28, 2025, aims to support vulnerable households and small businesses struggling with inflation, food insecurity, and economic instability. The program will focus on grassroots-level interventions, providing grants and livelihood support to low-income families and firms, ultimately aiming to enhance food security and create economic opportunities for those hit hardest by recent disruptions.
The World Bank views this loan as a significant step in addressing systemic vulnerabilities in Nigeria’s economy. By targeting resources directly to underserved communities, the initiative aims to reduce the burden of rising living costs and promote sustainable growth. This $500 million loan is part of a broader effort to bolster the country’s resilience, with two other funding packages, $80 million for nutrition improvements and $552 million for education enhancements, also pending approval.
These loans are part of the World Bank’s broader strategy to support Nigeria’s development, focusing on key areas such as healthcare, education, and poverty alleviation. However, there are concerns about Nigeria’s rising debt, with data from the Debt Management Office showing that despite approvals for numerous projects, a significant portion of loan funds remains unutilized. As of July 31, 2024, only 16% of the $7.45 billion approved for World Bank projects under President Bola Tinubu had been disbursed.
Experts warn that without improved transparency and accountability in managing the funds, the intended benefits may not be realized. The success of these new loans will depend on efficient implementation and coordination. As Nigeria moves forward with its economic recovery, the government will need to ensure that these resources translate into tangible improvements for its citizens.
Source: Business day