Nigeria’s request for a loan of $1.13bn may be approved by the world Bank before the end of March 2025.
The world Bank while disclosing this via information placed on its website revealed that the move is part of ongoing efforts to support the country’s economic resilience, health security, and educational reforms.
Three key projects for Nigeria are at the stage of negotiation, with approval set for this month the bank further disclosed.
Part of projects set for approval includes, the Accelerating Nutrition Results in Nigeria 2.0 programme, valued at $80m, which is expected to be approved by March 31, 2025.
This initiative is aimed at improving nutrition outcomes, particularly among vulnerable groups, by enhancing access to essential dietary support and reducing malnutrition rates.
Similarly, the Community Action for Resilience and Economic Stimulus Programme, which has a commitment value of $500m and is expected to be approved by March 24, 2025 is also at the negotiation stage.
The project is designed to provide economic stimulus for community-driven initiatives to strengthen economic resilience and growth.
Also, the Hope for Quality Basic Education for All programme, with a proposed funding of $552.2m, is at the negotiation stage and is expected to secure approval by March 31, 2025.
The initiative seeks to improve the quality of basic education by addressing infrastructure deficits, enhancing teacher training, and increasing educational accessibility across the country.
The proposed approval of these loans comes at a time when Nigeria continues to grapple with economic challenges, including foreign exchange liquidity constraints, fiscal deficits, and mounting debt servicing obligations.
According to data from the World Bank’s official website, this will bring Nigeria’s total approved loans to $9.25bn over three years, reflecting a growing reliance on multilateral funding to support critical sectors of the economy, including infrastructure, healthcare, education, and economic resilience.
Meanwhile, an analysis of Nigeria’s loan approvals from the World Bank since 2023 under the administration of President Bola Tinubu shows a significant increase in funding commitments.
Recall that the World Bank approved loans amounting to $2.7bn, which primarily targeted projects in renewable energy, women’s empowerment, education, and the power sector in 2023.
In the same vein, the funding approvals recorded in 2024 significantly surpassed those of the previous year, with a total of $4.32bn allocated to various projects. This increase was largely due to Nigeria’s growing need for financial assistance to stabilise the economy amid mounting fiscal pressures and rising public debt.
For 2025, Nigeria is looking to secure six new loans from the World Bank, with a combined value of $2.23bn. The planned loans cover key sectors, such as digital infrastructure, healthcare, education, nutrition, and community resilience.
While the proposed World Bank loans could provide much-needed fiscal relief, concerns remain over the country’s rising debt burden.
Recent data from the Central Bank of Nigeria indicate that the country has spent $5.47bn on external debt servicing in the past 14 months, highlighting the strain on its foreign reserves.