The World Bank is poised to approve a $632 million loan request for Nigeria today, March 31, 2025. This loan is intended to support critical areas, including nutrition improvement and quality basic education.
The $632 million World Bank loan to Nigeria is comprised of two main components:
– $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project: This project aims to improve nutrition outcomes for women and children in Nigeria.
– $552 million for the HOPE for Quality Basic Education for All programme: This programme seeks to enhance the quality of basic education in Nigeria, with a focus on improving learning outcomes and increasing access to education.
The World Bank has been a long-standing partner to Nigeria, providing financing and technical assistance to support the country’s development agenda. This new loan is part of the World Bank’s broader strategy to support Nigeria’s efforts to reduce poverty and improve living standards.
There are concerns about Nigeria’s rising debt profile, with the country’s external debt servicing costing $5.47 billion in the past 14 months. The World Bank’s share of Nigeria’s external debt stands at $17.32 billion as of the third quarter of 2024.
Development economist Dr. Aliyu Ilias has expressed concerns about Nigeria’s borrowing approach, stating that while borrowing itself is not bad, it has become problematic given the country’s current economic situation. Dr. Tayo Aduloju, CEO of the Nigerian Economic Summit Group, has called for a more strategic approach to borrowing, emphasizing the need to balance domestic and external borrowing while prioritizing critical infrastructure projects.
The World Bank’s approval of the $632 million loan request for Nigeria is a significant development in the country’s efforts to address critical development challenges. While concerns about Nigeria’s debt profile remain, this loan has the potential to make a positive impact on the lives of Nigerians, particularly in the areas of nutrition and education.