The World Bank is set to decide on three major loan projects for Nigeria in 2025, totaling $1.65 billion, as part of ongoing efforts to address critical developmental challenges in the country. The loans, currently under review, target internally displaced persons, basic education, and nutrition enhancement, reflecting the World Bank’s continued commitment to supporting Nigeria’s social and economic recovery.
According to details on the World Bank’s website, the first project, titled Solutions for the Internally Displaced and Host Communities Project, involves a commitment of $300 million. Scheduled for approval on April 8, 2025, the initiative seeks sustainable solutions for internally displaced persons (IDPs) and host communities, addressing key social and economic challenges faced by vulnerable populations.
The second project, HOPE for Quality Basic Education for All, is expected to secure $553.8 million in financing. Its approval is planned for March 20, 2025, and it remains at the concept review stage. The program focuses on improving access to quality education, a critical priority in Nigeria’s developmental agenda.
The largest share of the proposed financing, $800 million, is allocated to the Accelerating Nutrition Results in Nigeria 2.0 project. A decision meeting for the project is set for February 20, 2025, with a goal of tackling malnutrition and improving overall health outcomes, particularly among vulnerable groups.
Rising Loan Approvals Under Tinubu Administration
The proposed $1.65bn adds to Nigeria’s growing loan portfolio from the World Bank, which has approved $6.95 billion in financing since President Bola Tinubu assumed office 18 months ago. Most recently, the World Bank’s board approved a $500 million loan on December 13, 2024, for the Rural Access and Agricultural Marketing Project-Scale Up. The project aims to improve rural access to markets, healthcare, and schools while boosting agricultural productivity.
The Tinubu administration has prioritized loans targeting critical sectors, including education, healthcare, power, and economic reforms. Key approvals include:
• $750 million for Power Sector Recovery (June 2023)
• $500 million for Women’s Empowerment (June 2023)
• $700 million for the Adolescent Girls’ Education Initiative (September 2023)
• $750 million for Distributed Renewable Energy Access (December 2023)
• $2.25 billion for Economic Stabilization and Resource Mobilization (June 2024)
• $1.57 billion for Education, Healthcare, and Water Management (September 2024)
Debt and Fiscal Pressure
Nigeria’s growing reliance on international loans comes amid mounting external debt obligations. According to data from the Debt Management Office, the World Bank accounts for 38% of Nigeria’s total external debt, with $16.32 billion owed to the International Development Association (IDA). Additionally, $484 million is owed to the International Bank for Reconstruction and Development (IBRD).
Data from the Central Bank of Nigeria reveals that the federal government spent $3.58 billion servicing external debt in the first nine months of 2024, marking a 39.77% increase compared to $2.56 billion in the same period in 2023.
The World Bank’s International Debt Report highlights a global trend of rising debt servicing costs, with developing nations spending a record $1.4 trillion on foreign debt payments in 2023. Interest payments surged nearly 30% to $406 billion, impacting funding for critical sectors such as health, education, and climate resilience programs.
As Nigeria awaits the World Bank’s decisions in 2025, the federal government faces growing scrutiny over its ability to implement projects effectively and manage its rising debt burden while addressing pressing economic challenges.
