World Bank Set To Approve $632 Million Loans For Nigeria Amid Growing Debt Concerns

The World Bank is set to approve a total of $632 million in fresh loans to Nigeria on Monday, aimed at supporting crucial sectors such as nutrition improvement and quality education, despite mounting concerns over the country’s rising debt profile.

According to Punch, the loans consist of $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project and $552 million for the HOPE for Quality Basic Education for All programme.

Both projects are currently in the final stages of negotiation and are expected to receive approval later today. These loans are part of a broader strategy by the World Bank to assist Nigeria in achieving its development goals, focusing on healthcare, education, and community resilience.

The funds will enhance the Nigerian government’s efforts to improve nutrition outcomes and increase access to quality education for Nigerian children.

The approval of these loans follows the $500 million loan granted to Nigeria last Friday to support the Community Action for Resilience and Economic Stimulus Programme.

This initiative, launched on March 28, 2025, aims to address Nigeria’s economic challenges by providing grants for vulnerable households and supporting small businesses affected by economic downturns.

The Community Action Programme is focused on improving food security and providing economic opportunities for communities most impacted by recent economic fluctuations.

This is part of the World Bank’s broader support for Nigeria’s development amid ongoing challenges like inflation and high living costs.

While the latest loans provide a boost to Nigeria’s economic recovery efforts, the World Bank’s disbursement of earlier loans has raised concerns.

The $800 million approved for the National Social Safety-Net Program Scale Up, which aimed to support vulnerable Nigerians, has experienced delays.

According to  Punch, only $315 million has been disbursed out of the total loan amount, with the remaining funds stalled due to issues such as fraud detection under the program.

In addition, former humanitarian minister Betta Edu was suspended following an alleged misappropriation of ₦585 million for palliative distribution, and her predecessor, Sadiya Umar-Farouq, is under investigation by the EFCC for alleged financial misconduct.

These issues have raised questions about the efficiency and transparency of government-managed programs.

As the World Bank continues to offer financial support, Nigeria’s debt burden continues to grow. In 2023, the World Bank approved loans worth $2.7 billion for projects in renewable energy, education, and women’s empowerment.

The figure surged to $4.32 billion in 2024, reflecting Nigeria’s increasing dependence on concessional financing to stabilize its economy and address pressing challenges.

By 2025, Nigeria is set to secure six new loans from the World Bank, totaling $2.23 billion. These loans, aimed at sectors like healthcare, nutrition, digital infrastructure, and education, will bring Nigeria’s total World Bank loans to $9.25 billion over three years.

While these loans provide necessary fiscal relief, they contribute to concerns about the country’s growing debt, with Nigeria spending $5.47 billion on external debt servicing in the past 14 months alone.