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World Bank to approve $1.65bn in loans for Nigeria in 2025, targeting key development areas

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The World Bank is set to approve $1.65bn in loans for Nigeria in 2025 to support projects focused on displaced persons, education, and nutrition.

 

 

The World Bank is preparing to approve three major loans for Nigeria in 2025, totalling $1.65bn, aimed at addressing critical developmental challenges in the country.

The loans, which will focus on internally displaced persons, education, and nutrition enhancement, are expected to play a vital role in Nigeria’s social and economic recovery.

 

Also read: World Bank pledges $9bn annually for agribusiness by 2030 to boost sector

 

The first project, Solutions for the Internally Displaced and Host Communities Project, is set for approval on April 8, 2025, with a $300m commitment.

This initiative aims to provide sustainable solutions for internally displaced persons (IDPs) and their host communities, tackling their social and economic challenges.

The second project, HOPE for Quality Basic Education for All, will receive $553.8m in financing, with approval scheduled for March 20, 2025.

This project seeks to improve access to quality education, particularly for vulnerable groups across Nigeria.

The third and largest project, Accelerating Nutrition Results in Nigeria 2.0, will secure $800m in financing.

The project, set to be decided by February 20, 2025, aims to enhance nutrition outcomes across the country.

These loans are part of the World Bank’s continued support for Nigeria’s reform efforts, particularly in vulnerable sectors that require urgent intervention.

In the last 18 months, Nigeria has secured loans worth $6.95bn from the World Bank, reflecting ongoing international collaboration to address the country’s development needs.

 

New $500m Loan for Rural Access and Agricultural Marketing

In addition to these upcoming projects, the World Bank recently approved a $500m loan for Nigeria’s Rural Access and Agricultural Marketing Project—Scale Up.

The loan, approved on December 13, 2024, aims to improve rural infrastructure, providing better access to agricultural markets, schools, hospitals, and fostering social cohesion in rural areas. This marks the 10th loan approval under President Bola Tinubu’s administration.

 

Other Recent Approvals

Other notable World Bank projects approved under the current administration include a $750m loan for the Power Sector Recovery Performance-Based Operation, a $500m loan for women’s empowerment, and a $700m loan to improve educational opportunities for adolescent girls.

In June 2024, two significant loans totalling $2.25bn were approved to stabilize Nigeria’s economy.

These included $1.5bn for the Nigeria Reforms for Economic Stabilization and $750m for the Accelerating Resource Mobilization Reforms Programme-for-Results.

 

Rising Debt Service and World Bank’s Share of Nigeria’s External Debt

As Nigeria continues to secure loans for critical projects, the country’s external debt service burden has risen.

In the first nine months of 2024, Nigeria spent $3.58bn servicing its foreign debt, a 39.77% increase from the previous year. The World Bank’s share of Nigeria’s external debt stands at $16.32bn, or 38% of the total.

This rise in debt service payments comes amid global challenges, including higher interest rates, which have significantly impacted the fiscal balance of many developing nations.


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