In 2025, the World Bank will decide on three large loan projects for Nigeria worth $1.65 billion. These loans are intended to address important development concerns in the country, particularly displaced individuals, education, and nutrition.
The first project, Solutions for Internally Displaced and Host Communities, is worth $300 million and is set to be approved on April 8, 2025. It aims to address social and economic difficulties confronting displaced people and their host communities.
The second project, HOPE for Quality Basic Education for All, is projected to get $553.8 million and will be decided on March 20, 2025. It strives to increase educational access and quality across the country. The third, Accelerating Nutrition Results in Nigeria 2.0, has the greatest part, totalling $800 million.
Its approval date is set for February 20, 2025, and it focusses on eliminating malnutrition and improving health outcomes. Nigeria's Increasing Dependence on World Bank Loans In barely 18 months under President Bola Tinubu's government, Nigeria has secured $6.95 billion in World Bank loans.
These include investments in renewable energy, women's empowerment, and educational reforms. For example, in September 2023, the bank granted $700 million for the Adolescent Girls Initiative for Learning and Empowerment initiative, which promotes girls' education.
In December 2023, $750 million was set aside for renewable energy initiatives to increase electricity access. In 2024, the World Bank granted an additional $3.82 billion in loans for initiatives such as healthcare enhancement, economic stabilisation, and infrastructure development.
Rising Debt and its Implications Nigeria owes the World Bank $16.32 billion by 2024, accounting for 38% of the country's total external debt. The country paid $3.58 billion on foreign debt payments in the first nine months of 2024, up 39.77% from $2.56 billion in the same period in 2023.
Rising interest rates around the world are aggravating debt loads, with developing countries expected to pay $1.4 trillion on foreign loan servicing in 2023. This has pressured essential sectors such as health and education. Outlook The World Bank's continuing financial support demonstrates its commitment to Nigeria's growth.
However, the rising debt burden threatens fiscal stability. Nigeria's ability to efficiently manage these monies and achieve project objectives will be vital to long-term progress.
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