The World Bank is expected to approve a $1.13 billion loan package for Nigeria by the end of March 2025, aimed at bolstering the country’s economic stability, healthcare security, and educational reforms.
According to the World Bank’s official website, three major projects are currently under negotiation, with approval anticipated later this month.
One of the projects, the Accelerating Nutrition Results in Nigeria 2.0 program, worth $80 million, focuses on improving nutrition, especially for vulnerable populations, by enhancing access to essential dietary support and combating malnutrition. It is expected to be approved by March 31, 2025.
Another project, the Community Action for Resilience and Economic Stimulus Programme, allocated $500 million, aims to strengthen community-driven initiatives and build economic resilience. This project is slated for approval by March 24, 2025.
The HOPE for Quality Basic Education for All program, aimed at improving the quality of basic education by addressing infrastructure gaps, enhancing teacher training, and improving accessibility, is also set for approval by March 31, 2025, with a proposed funding of $552.2 million.
These loan approvals come amid Nigeria’s ongoing economic challenges, including foreign exchange shortages, fiscal deficits, and growing debt service obligations.
The Nigerian government is expected to secure six additional loans worth $2.23 billion from the World Bank in 2025, continuing its efforts to support the country’s economic and structural reforms. These loans will bring Nigeria’s total approved loans over the last three years to $9.25 billion, highlighting the country’s increasing reliance on multilateral financing for key sectors such as infrastructure, healthcare, education, and economic stability.
World Bank loan approvals for Nigeria have surged in recent years. In 2023, Nigeria secured $2.7 billion, funding initiatives in renewable energy, women’s empowerment, education, and the power sector. In 2024, loan approvals increased to $4.32 billion, reflecting the need for fiscal stabilization amid mounting debt.
Despite the potential relief from these loans, concerns remain regarding Nigeria’s escalating debt burden. Data from the Central Bank of Nigeria reveals that $5.47 billion was spent on external debt servicing over the past 14 months, putting pressure on foreign reserves.
Finance Minister Wale Edun emphasized that the government is exploring alternative funding sources, such as improving revenue generation and strategic investments, to reduce dependence on commercial loans.
However, Nigeria’s reliance on concessional financing, as evidenced by the World Bank’s growing commitments, remains a crucial part of the country’s reform strategy. As of December 2024, Nigeria continues to be the third-largest debtor to the World Bank’s International Development Association, despite a slight reduction in its exposure.
According to the World Bank’s financial statements, Nigeria’s debt to the IDA stood at $16.8 billion by the end of 2024, with the majority of the debt owed to the IDA itself.
For further details, visit the World Bank’s website or consult official reports from Nigeria’s Debt Management Office.
