The World Bank has approved $632 million in new loans for Nigeria to support education and nutrition initiatives, bringing total disbursements to the country under the current administration to over $7.4 billion.
The approvals come amid a sustained rise in Nigeria’s external debt, which stood at $17.32 billion in the third quarter of 2024.
The approved financing includes $552 million for the HOPE for Quality Basic Education for All programme and $80 million for the Accelerating Nutrition Results in Nigeria project.
Both projects are designed to improve social outcomes and strengthen public service delivery in underserved areas.
These loans follow a $500 million facility approved last week to support the Community Action for Resilience and Economic Stimulus Programme, aimed at expanding access to food security services and economic relief for vulnerable populations.
Nigeria’s increased access to multilateral funding has raised concerns among economists and development analysts as the country’s debt service obligations continue to rise.
According to data from the Central Bank of Nigeria, the country has spent $5.47 billion servicing external debt over the last 14 months, reflecting growing pressure on foreign reserves and fiscal buffers.
The Debt Management Office reports that the International Development Association accounts for $16.84 billion of Nigeria’s total debt to the World Bank while $485.08 million is owed to the International Bank for Reconstruction and Development.
The Federal Government has maintained that borrowing from concessional sources remains necessary to fund critical infrastructure and social programmes.
However, recent controversies surrounding the execution of existing World Bank-backed projects, including delays and fraud investigations, have raised concerns about transparency and project outcomes.
The government previously suspended its $800 million cash transfer initiative after reports of financial irregularities involving officials responsible for implementation.
Despite these issues, the World Bank has continued to support Nigeria’s reform agenda and has identified additional financing opportunities across sectors including healthcare, digital infrastructure, and economic resilience.
Nigeria is projected to secure up to $2.23 billion in new World Bank loans in 2025 as engagements on structural reforms intensify.
The Finance Ministry has reiterated its commitment to reducing commercial borrowing while increasing reliance on concessional funding and private sector capital.
The recent loan approvals underscore the country’s continued dependence on multilateral funding to stabilize key sectors of the economy.
Economists have called for stricter oversight and efficient fund utilization to ensure the loans deliver measurable results without compounding long-term debt sustainability risks.
