World Bank Approves $65m Additional Loan to Boost Nigeria’s Procurement Reform
The World Bank has approved an additional $65 million credit facility for Nigeria, bringing total funding under the Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) project to $145 million. The approval, granted on June 24, 2025, came earlier than projected and signifies continued international support for Nigeria’s public sector reform. The project, which started in 2021 with an initial $80 million loan, seeks to improve procurement systems and compliance with environmental and social standards across government and private institutions.
This new financing will support the rollout of the Electronic Government Procurement (e-GP) platform, a digital system designed to enhance procurement transparency, reduce delays, and ensure the efficient use of public resources. The World Bank clarified that the project’s development objectives remain unchanged: to build long-term capacity in managing procurement and social standards. Over 33,000 personnel have been trained so far, but an estimated 25,000 more public officials still require capacity development.
The SPESSE initiative has been widely praised for curbing corruption and inefficiencies in public procurement, while also promoting inclusivity, particularly benefiting small businesses and women-owned enterprises. The additional funding will extend the project’s implementation timeline to June 30, 2029, although the original loan component is still set to close by June 2026.
This reform push is critical for Nigeria’s fiscal health as the country grapples with economic pressures. The project plays a central role in the government’s strategy to improve service delivery through institutional strengthening and policy reform, a move widely seen as essential for long-term stability and accountability.
Nigeria’s growing reliance on external loans is notable, with World Bank debt reaching $18.23 billion by March 2025, accounting for nearly 40% of the country’s total external debt. This marks a steady rise from previous years, raising questions about debt sustainability even as development-focused funding continues to flow into critical sectors.
Source: Punch