The federal government will receive a $500 million loan from the World Bank for the Human Capital Opportunities for Prosperity and Equity (HOPE) project in Nigeria.
Senator Abubakar Atiku Bagudu, Minister of Budget and Economic Planning, made the announcement during a courtesy visit from Axel Schimmelpfennig, the International Monetary Fund (IMF) mission chief for Nigeria.
According to Bagudu, the loan will enhance funding for basic education and primary health care across Nigerian states, improving the availability and effectiveness of these services. The funding will also promote transparency and accountability in these sectors, improve teacher recruitment, deployment, and performance management.
Bagudu expressed gratitude for the World Bank’s support and explained that the Nigerian Constitution provides the legal framework for the budget process, enabling both federal and state governments to allocate expenditures for necessary services.
He further outlined that the economic and tax reforms initiated under President Bola Ahmed Tinubu’s administration are designed to strengthen Public Financial Management (PFM) systems, ensuring a more functional economy. He emphasized that these reforms are crucial for placing Nigeria on the path to economic stability.
Despite current challenges, such as the impact of fuel subsidy removal, the floating of the currency, and electricity reforms that have affected citizens differently, Bagudu reassured the IMF team that Nigeria is on track for economic recovery.
He thanked the IMF for its support but called for increased assistance in resource mobilization from international partners to help the government drive development across all sectors.
Earlier, Schimmelpfennig stated that his visit aimed to discuss Nigeria’s budgeting process, particularly the implementation of both the 2023/2024 and supplementary budgets within the same year, in preparation for the 2025 World Bank annual report. He welcomed Nigeria’s tax reforms, noting that increased revenue generation would facilitate further development for the country’s citizens, and assured Nigeria of continued IMF support for its development goals.
