Nigeria’s Debt Profile Under Tinubu Swells by $6.65 Billion as FG is Set to Receive Another Loan
- The Nigerian government has set sight on another 1.7 billion loans, which may be approved on September 26, 2024
- The loan is geared toward two essential development projects to boost Nigeria’s economic stability
- In total, Nigeria has secured about $4.95 billion in loans from the World Bank under Tinubu’s government
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria’s debt profile is set to swell under President Bola Tinubu as the Nigerian government is set to receive a fresh loan from the World Bank this month.
An official document reveals that the $1.7 billion loan is expected to be approved on September 26, 2024.
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The loan is meant for two projects
The funds will be received through significant development projects to enhance Nigeria’s economic stability and resource mobilisation capabilities.
The first project is the $500 million Nigeria Primary Healthcare Provision Strengthening Programme.
The second project, approved for $500 million, is the Nigeria Human Capital Opportunities for Prosperity and Equity Governance.
Meanwhile, the Sustainable Human Capital Opportunities for Prosperity and Equity Governance will get $700 million.
According to the document, these projects have reached the negotiation stage and are expected to be approved on September 26, 2024.
The loan process reaches an advanced stage
The negotiation stage, the final phase of the loan process, shows that the request has successfully cleared the appraisal stage between Nigeria and the World Bank.
If approved, Africa’s biggest economy will have secured $3.95 billion in loans from the institution this year alone and a cumulative $6.65 billion under President Bola Tinubu's government.
The proposed loan targets critical sectors such as healthcare, agriculture, and infrastructure and are pivotal for the country’s sustainable development and economic stability.
According to Punch, the Human Capital Opportunities for Prosperity and Equity, which will receive $500 million, focuses on boosting human capital by improving education, health, and social protection services.
The draft copy of the Environment and Social Systems Assessment shows that the project aims to improve Nigeria's quality and use of essential healthcare services and the resilience of health systems.
Per the report, the project has the Ministry of Budget and Economic Planning, the Federal Ministry of Budget and Economic Planning, the Federal Ministry of Health and Social Welfare, and the Ministry of Education as the implementing agencies.
Nigeria’s World Bank loan reaches new high
Legit.ng reported that on June 13, 2024, the World Bank approved two loan projects to bolster Nigeria’s economic stability and support its vulnerable populations.
The bank said the combined package, worth about $2.25 billion, comprises the $1.5 billion Nigeria Reforms for Economic Stabilisation to Enable Transformation Development Policy for Finance Programme and the $750 million Nigeria Accelerating Resource Mobilisation Reforms.
Under Tinubu's government, Nigeria has secured about $4.95 billion in loans from the World Bank.
Data from the Debt Management Office (DMO) shows that Nigeria owes the World Bank about $15.59 billion as of March 31, 2024.
Nigeria’s debt rises to N121trn
Legit.ng earlier reported that the Debt Management Office (DMO) says Nigeria’s total public debt has risen to N121.67 trillion in three months.
The amount represents an increase of N24.33 trillion or 24.99% from the N97.34 trillion as of December 2023.
Nigeria’s debt stock consists of the Nigerian government's domestic and external debts incurred by the 36 states and the Federal Capital Territory (FCT).
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Source: Legit.ng
