World Bank to Decide on $1.65bn Loan Projects for Nigeria in 2025

  • The World Bank is set to approve three major loan projects for Nigeria in 2025, totalling $1.65 billion, focusing on internally displaced persons, education, and nutrition.
  • These loans are part of Nigeria’s efforts to address critical developmental challenges and support its social and economic recovery.

The World Bank is set to approve three major loan projects for Nigeria in 2025, totalling $1.65 billion, to address critical development challenges in the country. These loans will focus on internally displaced persons (IDPs), education, and nutrition enhancement. Currently in the pipeline, the projects are part of Nigeria’s ongoing efforts to recover socially and economically, particularly in vulnerable sectors that require urgent attention.

The first project, the Solutions for the Internally Displaced and Host Communities Project, will receive $300 million and be approved on April 8, 2025. This project, currently at the concept review stage, seeks to provide sustainable solutions for IDPs and their host communities, addressing social and economic challenges.

The second project, HOPE for Quality Basic Education for All, will receive $553.8 million and is expected to be approved on March 20, 2025. This initiative, also in the concept review phase, focuses on improving essential education accessibility and quality across Nigeria.

The largest of the three, Accelerating Nutrition Results in Nigeria 2.0, is designed to enhance nutrition outcomes in the country and has a financing commitment of $800 million. A decision meeting for this project is scheduled for February 20, 2025.

These projects are part of a broader $1.65 billion financing package, which underscores the World Bank’s ongoing commitment to supporting Nigeria’s development and reform efforts. The success of these initiatives will depend on Nigeria’s ability to meet project prerequisites and demonstrate accountability in the implementation process.

The World Bank’s engagement with Nigeria has been strong under President Bola Tinubu’s administration. Over the past 18 months, the Nigerian government has secured loans worth $6.95 billion, with the latest approval being a $500 million loan for the Rural Access and Agricultural Marketing Project, which aims to improve rural connectivity and agricultural markets.

In addition to the projects listed, the World Bank has approved several other loans, including $750 million for the power sector recovery and $500 million for women’s empowerment programs. This ongoing support highlights the World Bank’s role in Nigeria’s reform and development agenda, which seeks to stabilise its economy and enhance social services.

Currently, Nigeria’s external debt to the World Bank totals $16.32 billion, primarily owed to the International Development Association (IDA), representing 38% of the country’s total external debt. This rising debt burden has increased debt servicing costs, further stressing Nigeria’s fiscal balance amid ongoing economic challenges.

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