The World Bank is set to decide on three major loan projects for Nigeria in 2025, totaling $1.65bn, aimed at addressing critical developmental issues in the country.
These loans, which are currently in the pipeline, will target internally displaced persons, education, and nutrition enhancement.
According to the World Bank’s website, the loans are designed to support Nigeria’s social and economic recovery, particularly in sectors that require urgent intervention.
The first project, named the Solutions for the Internally Displaced and Host Communities Project, has a commitment of $300m and is scheduled for approval on April 8, 2025.
This project is still in the concept review stage and aims to provide sustainable solutions for internally displaced persons and their host communities, addressing both social and economic challenges.
The second project, HOPE for Quality Basic Education for All, is set to receive $553.8m in financing. Its approval is scheduled for March 20, 2025, and it also remains in the concept review phase.
The third project, Accelerating Nutrition Results in Nigeria 2.0, is the largest of the proposed loans, with a commitment of $800m.
A decision meeting for this project is expected to take place by February 20, 2025.
This $1.65bn financing package underscores the World Bank’s ongoing support for Nigeria’s reforms.
The approval process for these loans will likely depend on Nigeria’s ability to meet project prerequisites and demonstrate accountability in implementation.
In addition to these upcoming loans, Nigeria’s government, under President Bola Tinubu, has secured $6.95bn from the World Bank in the past 18 months.
This total increased with the recent approval of a $500m loan for a project in Nigeria.
The World Bank Board approved the $500m loan for the Rural Access and Agricultural Marketing Project—Scale Up on December 13, 2024.
The project aims to improve access to agricultural markets, schools, and hospitals, while promoting social cohesion in rural areas. This loan represents the 10th World Bank project approved during Tinubu’s administration.
The first project under Tinubu’s administration, the $750m Power Sector Recovery Performance-Based Operation, was approved to stabilize and enhance Nigeria’s power sector.
In June 2023, the World Bank approved a $500m loan to boost women’s empowerment in Nigeria through the Nigeria for Women Program.
The following month, a $700m loan was approved to support the Adolescent Girls Initiative for Learning and Empowerment, enhancing secondary education access for girls in certain Nigerian states.
Other approvals include the $750m Distributed Access through Renewable Energy Scale-up project in December 2023, designed to provide better electricity access to 17.5 million Nigerians.
On June 13, 2024, the World Bank approved a $2.25bn financing package, which included a $1.5bn loan for the Nigeria Reforms for Economic Stabilization and a $750m loan for the Nigeria Accelerating Resource Mobilization Reforms Programme.
In September 2024, the World Bank approved three new projects totaling $1.57bn, which included funding for governance improvement in education and health, healthcare strengthening, and a $500m investment in sustainable power and irrigation to address climate-related challenges.
As of the latest external debt report, Nigeria owes the World Bank $16.32bn, accounting for 38% of the country’s external debt, with most of it owed to the International Development Association.
Data from the Debt Management Office shows that Nigeria spent $3.58bn on foreign debt servicing in the first nine months of 2024, marking a 39.77% increase from the previous year.
This surge highlights the mounting pressure on Nigeria’s fiscal balance amid economic difficulties.
The World Bank’s International Debt Report reveals that developing nations, including those eligible for loans from the World Bank’s International Development Association, are grappling with unprecedented foreign debt servicing costs.
In 2023, such nations spent $1.4tn on debt servicing, with interest payments rising by nearly 30%.
