UPDATED: World Bank okays $1.57bn loan for Nigeria

The World Bank has approved three new loan requests totalling $1.57bn in financing for Nigeria.

According to a statement released on Monday, the approval is to support the Federal Government in strengthening human capital through better health for women, children and adolescents.

It added that the approved projects would also help build resilience to the effects of climate change, such as floods and drought, by improving dam safety and irrigation.

The statement read, “The World Bank has today approved three operations for a total of $1.57bn to support the Government of Nigeria in strengthening human capital through better health for women, children and adolescents and building resilience to the effects of climate change such as floods and droughts through improving dam safety and irrigation.”

The international lender stated that this new financing includes $500m for addressing governance issues that constrain the delivery of education and health, $570m for the Primary Healthcare Provision Strengthening Programme and $500m for the Sustainable Power and Irrigation for Nigeria Project.

“The HOPE-GOV and HOPE-PHC programmes combined will support the Government of Nigeria to improve service delivery in the basic education and primary healthcare sectors which are critical towards improving Nigeria’s human capital outcomes.

“The SPIN project will support the improvement of dams’ safety and management of water resources for hydropower and irrigation in selected areas of Nigeria.

“The HOPE-GOV Programme will support Nigeria to address underlying governance weaknesses in the systems and procedures of government in two key human development sectors,” it noted.

The approval, made on September 26, 2024, highlights the World Bank’s commitment to strengthening Nigeria’s human capital and building resilience in the face of climate threats.

It also indicates that Nigeria has secured a total of $6.52bn in loans from the World Bank under the administration of President Bola Tinubu amid concerns over the country’s rising external debt servicing costs.

Continuing, the World Bank explained that the HOPE-GOV Program will address underlying governance weaknesses in the systems and procedures of government to substantially reduce maternal and under-five mortality, benefiting 40 million people, especially vulnerable populations.

It said the project to be implemented by the Federal Ministry of Budget and Economic Planning, Federal Ministry of Budget and Economic Planning, Federal Ministry of Health and Social Welfare, and Federal Ministry of Education will receive $500m International Development Association credit and an additional $70m in grant financing from the Global Financing Facility for Women, Children and Adolescents.

“The HOPE-GOV Program will support Nigeria to address underlying governance weaknesses in the systems and procedures of government in two key human development sectors. It will particularly focus on critical cross-cutting challenges and enabling factors related to both financial and human resource management in basic education and primary healthcare sectors. The Program will increase the availability and effectiveness of financing for basic education and primary healthcare service delivery, enhance transparency and accountability of financing and improve recruitment, deployment and performance management of basic education teachers and primary healthcare workers by federal, state, and local governments.

“In support of the government’s newly launched reforms in the health sector, under the Health Sector Renewal Investment Initiative, the HOPE-PHC project will improve the quality and utilization of core reproductive, maternal, newborn, child, and adolescent health and nutrition services to substantially reduce maternal and under-five mortality and to improve the resilience of the health system— benefiting 40 million people, especially vulnerable populations.