The World Bank is set to approve three major loan projects for Nigeria in 2025, totaling $1.65 billion, to support the country in addressing key developmental challenges. These loans will focus on critical areas such as internally displaced persons (IDPs), education, and nutrition.
According to information from the World Bank’s website, the loan projects aim to contribute to Nigeria’s social and economic recovery, particularly in vulnerable sectors that require urgent intervention. The first project, Solutions for the Internally Displaced and Host Communities Project, is set to receive $300 million in funding. Scheduled for approval on April 8, 2025, the project is still in the concept review phase. It aims to provide sustainable solutions for internally displaced persons and their host communities, addressing their social and economic challenges.
The second project, HOPE for Quality Basic Education for All, is expected to secure $553.8 million in financing. It will be reviewed and possibly approved on March 20, 2025. This project also remains in the concept review stage and focuses on improving access to quality education, especially in marginalized communities across Nigeria. It aims to provide better education infrastructure and support for disadvantaged children, with a particular focus on increasing enrollment and improving educational outcomes.
The third project, Accelerating Nutrition Results in Nigeria 2.0, will be the largest of the three, with a proposed financing of $800 million. The World Bank plans to hold a decision meeting for this project by February 20, 2025. The initiative will address Nigeria’s ongoing challenges with malnutrition and food insecurity, aiming to improve nutrition outcomes for vulnerable populations, particularly children and women.
These loans are part of the World Bank’s broader commitment to supporting Nigeria’s ongoing reforms and development efforts. The bank emphasized that Nigeria’s ability to meet project prerequisites and demonstrate accountability during implementation will be essential in securing these funds.
This $1.65 billion package builds on the previous $6.95 billion in loans that Nigeria has secured from the World Bank since President Bola Tinubu assumed office. These loans have been approved over the past 18 months and span various sectors such as power, women’s empowerment, education, and healthcare. Notably, in December 2024, the World Bank approved a $500 million loan for the Rural Access and Agricultural Marketing Project—Scale Up, aimed at improving rural infrastructure and enhancing market access for agricultural products.
Under President Tinubu’s administration, other major loans have been approved by the World Bank, including:
- $750 million for the Power Sector Recovery Performance-Based Operation, aimed at stabilizing and improving Nigeria’s power sector.
- $500 million for Women’s Empowerment, approved in June 2023, to support the Nigeria for Women Program, which focuses on empowering women through economic and social opportunities.
- $700 million for the Adolescent Girls Initiative for Learning and Empowerment, approved in September 2023, to improve educational access for adolescent girls in Nigeria.
- $750 million for the Distributed Access through Renewable Energy Scale-up Project, aimed at improving electricity access in rural and underserved areas through renewable energy.
In June 2024, the World Bank also approved a combined package of $2.25 billion for Nigeria, which included $1.5 billion for economic stabilization and $750 million for resource mobilization reforms. These initiatives are aimed at supporting Nigeria’s economic growth and addressing its fiscal challenges.
In September 2024, three new projects worth $1.57 billion were approved, including funding for improving healthcare, education, and tackling climate-related issues. These included $500 million for the HOPE-GOV programme to improve governance in the education and health sectors, $570 million for the Primary Healthcare Provision Strengthening Program, and $500 million for the Sustainable Power and Irrigation for Nigeria Project.
As of the latest data, Nigeria owes the World Bank $16.32 billion, making up 38% of the country’s total external debt. The majority of this debt is owed to the International Development Association (IDA), which provides concessional loans to low-income countries.
Nigeria’s debt burden has been steadily increasing, with the government spending $3.58 billion on servicing foreign debt in the first nine months of 2024, a 39.77% increase from the same period in 2023. This growing debt service cost is contributing to fiscal pressures on Nigeria’s economy. The World Bank’s latest report on global debt revealed that developing nations, particularly those eligible for IDA loans, are facing mounting challenges with debt servicing due to rising interest rates.
Despite these challenges, the World Bank’s ongoing support for Nigeria’s development projects underscores the importance of international partnerships in addressing the country’s most pressing issues. The $1.65 billion loan package for 2025 is a significant step toward furthering Nigeria’s development, improving living conditions, and addressing the needs of vulnerable populations.