Nigeria is set to receive a fresh loan from the World Bank worth $1.7 billion, with the approval expected on September 26, 2024. The loan will be directed toward three major development projects, aimed at strengthening key sectors of the economy.
According to official documents obtained by The PUNCH, the three projects include the Nigeria: Primary Healthcare Provision Strengthening Programme, which will receive $500 million, the Nigeria Human Capital Opportunities for Prosperity and Equity Governance Project, also set to receive $500 million, and the Sustainable Power and Irrigation for Nigeria Project, which will get $700 million. These projects are designed to enhance economic stability and improve resource mobilization in the country.
The document indicates that the projects have already passed the negotiation stage, the final phase in the loan approval process. The Nigerian government, represented by the Minister of Finance, successfully negotiated with the World Bank.
Once the board approves the loans on September 26, Nigeria will have secured a total of $3.95 billion in loans from the World Bank this year, bringing the cumulative loan total to $6.65 billion under the administration of President Bola Tinubu.
The funds will target critical sectors like healthcare, agriculture, and infrastructure. The Nigeria Human Capital Opportunities for Prosperity and Equity Governance Project, for example, focuses on improving education, healthcare, and social protection services to enhance human capital development.
A draft Environment and Social Systems Assessment prepared by the World Bank outlines the project’s objectives, which include improving the quality of healthcare services and strengthening the resilience of the health system in Nigeria.
“The Programme Development Objective is to improve the quality and utilization of essential healthcare services and health system resilience in Nigeria,” the document stated.
It also noted that key indicators include the number of women and children receiving essential health services, the readiness of primary healthcare facilities, and the proportion of births attended by skilled health workers.
The Federal Ministries of Budget, Health, and Education will be responsible for implementing the Nigeria Human Capital Opportunities for Prosperity and Equity Governance Project.
The Nigeria: Primary Healthcare Provision Strengthening Programme, which will receive $500 million, aims to bolster Nigeria’s primary healthcare infrastructure by upgrading facilities, training healthcare professionals, and improving service delivery. This project will be overseen by the Ministry of Health.
The third project, Sustainable Power and Irrigation for Nigeria, will receive $700 million. It is designed to promote sustainable power generation and irrigation, which are essential for boosting agricultural and industrial development. The Federal Ministry of Water Resources and Sanitation will implement this project.
Additionally, the World Bank is expected to approve two more loans in December 2024 and April 2025. The Rural Access and Agricultural Marketing Project-Scale Up will receive $500 million by December 16, 2024, while the Solutions for the Internally Displaced and Host Communities Project will be approved on April 8, 2025.
This new loan package follows the World Bank’s announcement in June of a $2.25 billion package aimed at supporting Nigeria’s economic stability and helping vulnerable populations. The package included $1.5 billion for the Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing Program and $750 million for the Nigeria Accelerating Resource Mobilization Reforms Program-for-Results.
Nigeria has already received $751.88 million from the $1.5 billion under the economic stabilization program.
As of March 31, 2024, Nigeria’s external debt to the World Bank stood at $15.59 billion, according to the Debt Management Office. Despite the rising debt, the government has continued to secure loans to address pressing economic challenges.
Recently, it was reported that 20 state governors borrowed a combined N446.29 billion in the past six months, highlighting the financial difficulties faced by many subnational governments.
The approval of these loans is expected to provide much-needed support for Nigeria’s development efforts, particularly in areas like healthcare, education, and infrastructure, as the country grapples with economic challenges and rising debt.