The World Bank is set to approve new loans totaling $632 million for Nigeria today (Monday), despite growing concerns over the country’s rising debt profile. The loans aim to support critical areas, including nutrition improvement and quality basic education.
According to information from the World Bank’s website, the two loans expected to be approved today 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 programme. Both projects are currently in the negotiation stage and are expected to receive final approval later today.
These loans are part of a broader strategy by the World Bank to support Nigeria’s development agenda, with a focus on healthcare, education, and community resilience. The funding is expected to boost the government’s efforts to improve nutrition outcomes and enhance access to quality education for Nigerian children.
Just last Friday, the World Bank approved a $500 million loan to support Nigeria’s Community Action for Resilience and Economic Stimulus Programme. The programme, approved on March 28, 2025, aims to address economic challenges by providing livelihood support, food security services, and grants to vulnerable households and small businesses.
This initiative targets vulnerable populations by offering financial assistance to mitigate the economic hardships they face. The programme will focus on grassroots support amid ongoing challenges such as inflation and high living costs.
Despite new loan approvals, the disbursement of previously approved funds has faced challenges. Out of the $800 million loan approved in December 2021 for the National Social Safety-Net Program Scale Up, only $315 million has been disbursed, with the remaining funds held back due to reported cases of fraud.
The Federal Government recently suspended its cash transfer programme amid allegations of misappropriation, including N585 million earmarked for palliative distribution. The suspension followed investigations involving former humanitarian ministers Betta Edu and Sadiya Umar-Farouq, who are being probed over alleged mismanagement of funds.
In 2023, the World Bank approved $2.7 billion in loans to Nigeria, focusing on renewable energy, women’s empowerment, education, and the power sector. In 2024, approvals surged to $4.32 billion, driven by the country’s urgent need for financial support amid economic challenges.
Looking ahead to 2025, Nigeria is expected to secure six additional loans totaling $2.23 billion to support digital infrastructure, healthcare, education, nutrition, and community resilience. These approvals will bring Nigeria’s total loans from the World Bank to $9.25 billion over three years.
However, concerns persist over Nigeria’s growing debt burden. Data from the Debt Management Office shows that as of the third quarter of 2024, Nigeria’s external debt to the World Bank amounted to $17.32 billion, representing a significant portion of the country’s foreign debt profile.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has emphasized the need to prioritize revenue generation and strategic investments over borrowing. He noted that the government is now focusing on optimizing assets and attracting private sector investment rather than accumulating more debt.
While some experts believe that borrowing itself is not inherently detrimental, they caution that Nigeria’s current economic situation makes further borrowing increasingly risky. Development economist Dr. Aliyu Ilias warned that without efficient fund utilization and transparent project execution, the benefits of these loans may not outweigh the long-term financial implications.
As Nigeria navigates its debt challenges, stakeholders are urging the government to ensure that these loans are used effectively to achieve sustainable development and economic stability.
