The World Bank is set to approve two new loans for Nigeria, totaling $632 million, today (Monday), despite growing concerns about the country’s rising debt. These loans are aimed at improving nutrition and quality basic education. The loans include $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project and $552 million for the HOPE for Quality Basic Education for All program. Both projects are in the final approval stages and are part of the World Bank’s broader strategy to support Nigeria’s development in sectors like healthcare and education.
Additionally, the World Bank approved a $500 million loan for Nigeria last Friday to support the Community Action for Resilience and Economic Stimulus Program. This program is designed to offer livelihood support, food security services, and grants to vulnerable households and businesses. This marks a significant step toward addressing Nigeria’s economic challenges, including inflation and high living costs.
In contrast, the World Bank has been slow in releasing funds for a previous loan aimed at aiding poor Nigerians. About $315 million of the $800 million approved for the National Social Safety-Net Program Scale-Up has been disbursed, with the remainder delayed due to fraud concerns. Investigations have already led to suspensions and probes of officials involved in misappropriating funds under the program.
As Nigeria continues to rely on the World Bank for financial assistance, there are concerns about the country’s growing debt burden. In 2025, Nigeria is expected to secure six new loans worth $2.23 billion, bringing its total approved loans from the World Bank to $9.25 billion over three years. With loans already approved for projects in areas like renewable energy, women’s empowerment, and education, there are mounting worries about the impact on Nigeria’s fiscal health.
The World Bank’s growing involvement in Nigeria reflects the country’s increasing reliance on concessional financing for development, but experts, including development economist Dr. Aliyu Ilias, warn that continued borrowing could worsen Nigeria’s financial challenges. While borrowing itself isn’t necessarily problematic, experts argue that the country must focus on using funds efficiently and ensuring that projects deliver long-term economic and social benefits.