The World Bank is expected to approve fresh loans totalling $632 million for Nigeria today, March 30, amid concerns over the country’s rising debt burden.
The loans will support critical sectors, including nutrition and basic education. According to information on the World Bank’s website, the expected approvals 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.
These projects are currently in the negotiation stage and are set for final approval today. The World Bank’s funding aims to support Nigeria’s development agenda, focusing on healthcare, education, and community resilience.
Last Friday, the World Bank also approved a $500 million loan for Nigeria under the Community Action for Resilience and Economic Stimulus Programme. The approval, granted on March 28, is intended to enhance economic stability through livelihood support, food security services, and grants for vulnerable households and small businesses.
Despite these approvals, concerns persist over Nigeria’s growing reliance on external debt. The World Bank had previously approved an $800 million loan for the National Social Safety-Net Program Scale Up, but only $315 million has been disbursed due to fraud-related issues. The Federal Government recently suspended its cash transfer programme following allegations of fund mismanagement, leading to an ongoing investigation into former ministers Betta Edu and Sadiya Umar-Farouq.
Meanwhile, Nigeria is projected to secure six new loans totalling $2.23 billion from the World Bank in 2025, bringing its total approved loans to $9.25 billion over three years. This trend highlights the country’s increasing dependence on multilateral funding to drive economic and social reforms.
Finance Minister Wale Edun has stated that the government is prioritising revenue generation and concessional loans over commercial borrowing. However, experts have raised concerns about the sustainability of Nigeria’s borrowing practices, urging a more strategic approach to debt management and economic recovery.
