World Bank Approves $1.57 Billion Loan for Nigeria Despite Soaring Debt

Despite Nigeria’s rising debt profile, the Federal Government has received approval from the World Bank for additional loan requests totaling $1.57 billion.

The World Bank said the loan includes $500 million to address issues that constrain quality education and health while $570 million is for the Primary Healthcare Provision Strengthening Programme.

The remaining $500 million will go to the Sustainable Power and Irrigation for Nigeria Project.

As of June, Nigeria has a total public debt of N121 trillion with N65.6 trillion domestic and N56 trillion or $42.1 billion representing the nation’s foreign debt. Nigeria’s debt-to-GDP ratio rose above the 50% mark for the first time in June.

The multilateral financial institution on Monday said the latest fund was approved to support the Federal Government in strengthening human capital through better health for women, children and adolescents.

Also, it said the approved projects would also help build resilience to the effects of climate change such as floods and drought through improving dam safety and irrigation.

The statement read, “The World Bank has today approved three operations for a total of $1.57bn to support the Government of Nigeria in strengthening human capital through better health for women, children and adolescents and building resilience to the effects of climate change such as floods and droughts through improving dam safety and irrigation.”

“The HOPE-GOV and HOPE-PHC programmes combined will support the Government of Nigeria to improve service delivery in the basic education and primary healthcare sectors which are critical towards improving Nigeria’s human capital outcomes.

“The SPIN project will support improvement of dams’ safety and management of water resources for hydropower and irrigation in selected areas of Nigeria.

“The HOPE-GOV Programme will support Nigeria to address underlying governance weaknesses in the systems and procedures of government in two key human development sectors,” it noted.