The World Bank has approved three new loan requests totaling $1.57 billion to enhance Nigeria’s human capital through better health services for women, children, and adolescents. This funding raises Nigeria’s total debt to the World Bank to approximately $17.16 billion.
Among the six approved projects are major allocations for power ($750 million), women’s empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), and resource mobilisation reforms ($750 million). According to the Debt Management Office, Nigeria owed the World Bank $15.59 billion as of March 31, 2024.
The newly – approved loans also aim to strengthen climate resilience against floods and droughts by improving dam safety and irrigation systems.
“The World Bank has approved $1.57 billion to support Nigeria in enhancing health services and building resilience against climate impacts,” the statement said.
The financing package includes $500 million for addressing governance issues in education and healthcare, $570 million for the Primary Healthcare Provision Strengthening Programme, and $500 million for the Sustainable Power and Irrigation for Nigeria Project.
The HOPE-GOV and HOPE-PHC programs will improve service delivery in basic education and primary healthcare, critical for enhancing Nigeria’s human capital. Meanwhile, the SPIN project aims to boost dam safety and water resource management for hydropower and irrigation.
Approved on September 26, 2024, this funding marks a significant milestone, with Nigeria securing a total of $6.52 billion in loans from the World Bank during President Bola Tinubu’s administration, amidst rising concerns about external debt servicing costs.
The HOPE-GOV Program targets systemic governance weaknesses affecting maternal and child health, aiming to reduce mortality rates and benefit around 40 million people, especially vulnerable populations.
The project will involve the Federal Ministry of Budget and Economic Planning, Federal Ministry of Health and Social Welfare, and Federal Ministry of Education, with $500 million in International Development Association credits and an additional $70 million in grants from the Global Financing Facility for Women, Children, and Adolescents.
“This program will tackle governance challenges in education and healthcare, enhancing financing effectiveness and accountability,” the statement emphasized.
Additionally, the HOPE-PHC project aims to improve essential health services, reducing maternal and child mortality. Funded by a concessional $500 million IDA credit and $70 million in grants, this initiative will also receive support from the UK Foreign, Commonwealth & Development Office and the Children’s Investment Foundation Fund.
Furthermore, the SPIN project will enhance irrigation and drainage over 40,000 hectares, benefiting up to 950,000 individuals, including farmers and livestock breeders, by protecting them from floods and droughts.
World Bank Country Director for Nigeria, Dr. Ndiamé Diop, stated that this financing demonstrates the Bank’s commitment to addressing the challenges Nigerians face, particularly women and girls.
“Investing in health and education is crucial for increasing future employment opportunities and reducing poverty among vulnerable populations. This financing will tackle access and quality issues in services and governance arrangements,” he noted.
The World Bank is expected to approve another $500 million loan by December 16, 2024, for the Rural Access and Agricultural Marketing Project – Scale Up initiative.
Earlier in June, the World Bank announced two loan projects totaling $2.25 billion aimed at bolstering Nigeria’s economic stability and supporting vulnerable populations. This package includes the $1.5 billion Nigeria Reforms for Economic Stabilisation and the $750 million Nigeria Accelerating Resource Mobilisation Reforms Program-for-Results.
