The World Bank is set to approve two major loans totaling $632 million to Nigeria today, aimed at improving nutrition and enhancing basic education in the country.
These loans include $80 million for the “Accelerating Nutrition Results in Nigeria 2.0” project and $552 million for the “HOPE for Quality Basic Education for All” program.
Both loans are expected to be finalized today as part of the World Bank’s ongoing support for Nigeria’s development agenda, focusing on healthcare, education, and community resilience.
A senior official from the World Bank revealed, “These loans will play a critical role in supporting the government’s efforts to improve nutrition and education outcomes for children in Nigeria.”
In addition to these approvals, the World Bank had previously approved a $500 million loan on March 28 to fund the “Community Action for Resilience and Economic Stimulus Programme,” which aims to provide essential support to vulnerable households and small businesses amid Nigeria’s economic challenges.
Despite these financial injections, concerns about Nigeria’s growing debt burden remain. As of the third quarter of 2024, the country owed $17.32 billion in external debt to the World Bank, raising questions about the sustainability of continued borrowing.
Development economist Dr. Aliyu Ilias cautioned, “Borrowing itself is not bad, but at the point Nigeria is now, borrowing is becoming a bad thing,” adding that the government must focus on efficiently managing existing resources rather than accumulating more debt.
The World Bank’s increased funding to Nigeria, totaling $7.45 billion in the past two years, is part of a broader effort to address the country’s economic and social challenges, but it also underscores the growing reliance on external debt to fund key sectors.