World Bank may approve $2bn loan for Nigeria, says report
The World Bank may approve four loan projects totalling $2 billion for Nigeria this year.
A report by Nairametrics stated that the four projects are currently undergoing concept review, an appraisal stage that will lead to further negotiation and approval between Nigeria, which is the borrower and often represented by the Minister of Finance and the World Bank.
If approved, Nigeria will have secured a total of $4.25 billion in loans from the bank this year alone and a cumulative $6.95 billion under the administration of President Bola Tinubu.
The proposed loan projects, targeting crucial sectors such as healthcare, agriculture, and infrastructure, are pivotal for the country’s sustainable development and economic stability.
According to information obtained from the World Bank’s website, each loan project is estimated to receive a net commitment of $500 million from the Washington-based lender.
The next project to likely get approved is Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE), which is set to receive $500 million with an approval date of September 17, 2024. The HOPE project will focus on enhancing human capital by improving education, health, and social protection services.
Another $500 million is earmarked for the Nigeria: Primary Healthcare Provision Strengthening Program, which has an approval date of September 23, 2024. This program aims to fortify Nigeria’s primary healthcare system by enhancing healthcare infrastructure, training healthcare professionals, and improving service delivery.
The third project, Sustainable Power and Irrigation for Nigeria Project, will also receive $500 million and is scheduled for approval on September 26, 2024. This project focuses on sustainable power generation and irrigation, both of which are essential for agricultural and industrial development.
The Rural Access and Agricultural Marketing Project – Scale Up is set to receive $500 million and is scheduled for approval on November 28, 2024. This initiative seeks to improve rural infrastructure and market access for agricultural products.
In addition to these four projects, the World Bank has scheduled another loan project for next year. The Solutions for the Internally Displaced and Host Communities Project is set to receive $300 million and is scheduled for approval on April 8, 2025.
The World Bank recently announced the approval of two loan projects aimed at bolstering Nigeria’s economic stability and supporting its vulnerable populations.
According to a statement from the bank, the combined package, totalling $2.25 billion, comprises the $1.5 billion Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing Program (DPF) and the $750 million Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR).
So far, Nigeria has secured a total of $4.95 billion in loans from the World Bank under the administration of President Bola Tinubu amid concerns over the country’s rising external debt servicing costs.
Not less than six loan projects have been approved and they include loans for power ($750 million), women empowerment ($500 million), girl’s education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion) and resource mobilization reforms ($750 million).
Data from the external debt stock report of the Debt Management Office (DMO) shows that Nigeria owes the World Bank a total of $15.59 billion as of March 31, 2024.
