After repaying N6trn debt, Tinubu's Govt Successfully Secures Fresh $1bn Loan From World Bank
- The federal government of Nigeria has secured approval for new loans from the World Bank worth over $1 billion
- The government said it will use the new loans to support Nigeria's human capital development, health, and climate resilience
- Nigeria's public debt profile is above N100 trillion, and a recent payment of N6 trillion was made to service matured debt
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The administration of President Bola Tinubu has successfully secured approval for $1.57 billion in loans from the World Bank.
The loans, which are for three projects, cover human capital through better health for women, children, and adolescents
Source: Getty Images
In a statement published by the World Bank, the approval is to support the federal government in financing projects.
The Bretton Institution said Nigeria will utilise these funds to build resilience to the effects of climate change, such as floods and drought, through improving dam safety and irrigation.
Part of the statement reads:
“The World Bank has 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.”
Here is the breakdown of the projects and intended usage:
HOPE-GOV Programme
Funding: $500 million
Objective: To address governance issues that hinder the delivery of education and health services, thereby strengthening the systems and procedures of government in these key human development sectors.
Primary Healthcare Provision Strengthening Programme (Hope-PHC)
Funding: $570 million
Objective: To improve service delivery in the primary healthcare sector, focusing on enhancing health outcomes for women, children, and adolescents.
Sustainable Power and Irrigation for Nigeria Project (SPIN)
Funding: $500 million
Objective: To improve the safety and management of dams and water resources, supporting hydropower generation and irrigation systems to enhance resilience to climate change effects, such as floods and droughts.
Nigeria spends N6trn on debt servicing
Legit.ng earlier reported that the Nigerian government spent over N6bn on debt servicing payments in the first half of 2024.
The amount exceeded the debt service of 2023 N3.58 trillion, representing a 69% increase.
Experts said the debt servicing showed Nigeria’s rising fiscal vulnerability.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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