World Bank Approves 2 New Loans for Nigeria as Debt Under Tinubu Hits New High
- The World Bank is set to approve about $635 million in loans to the Nigerian government, showing the country’s reliance on loans for development
- The loans are reportedly to support critical areas such as nutrition improvement and quality basic education
- Findings show that the two loans, which include $80 million and $552 million, will be disbursed on Monday, March 31, 2025
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The World Bank is set to approve new loans to Nigeria totalling $632 million on Monday, March 31, 2025, bringing the total of World Bank loans under Tinubu to $9.25 billion.
The loans are to support key areas such as nutrition improvement and quality basic education.
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FG to receive six loans from World Bank
Data from the World Bank website on Sunday, March 30, 2025, shows that the two loans include $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project and $552 million for the HOPE scheme.
The projects are currently in the negotiation stage and will receive final approval on Monday, March 31, 2025.
Legit.ng previously reported that the World Bank would approve six new loans for Nigeria under Tinubu in 2025.
The new loans form part of a larger strategy by the bank to support Nigeria’s development agenda, focusing on healthcare, education, and community resilience.
The loans will also boost the government’s efforts to improve nutrition outcomes and enhance access to quality education for children.
World Bank approves $500 million loans for Nigeria
Punch reports that the global lender already approved a $500 million loan to Nigeria on Friday, March 28, 2025, to support the country’s Community Action for Resilience and Economic Stimulus Programme.
The approval was a significant step to addressing Nigeria's economic hardship via expanded access to livelihood support, security services, and grants for poor and vulnerable families and companies.
It is designed to provide essential support to households affected by economic downturns and boost community resistance.
It targets vulnerable populations by offering grants to families and small businesses to ease economic hardship.
The loan approval will enhance Nigeria’s efforts to stimulate the economy via grassroots support, especially amid ongoing challenges like inflation and living costs.
The package will concentrate on improving food security and creating economic opportunities for communities hit by recent financial volatility.
Investigation shows that the World Bank disbursed about $315 million out of the $800 million approved for the National Social Safety-Net Programme Scale Up.
According to reports, Nigeria has not received further funds from the global lender on the project, which was approved in December 2021.
The delay in the disbursement was reportedly linked to fraud detected under the scheme.
World Bank loans to be disbursed to Nigerians
Legit.ng reported that President Bola Tinubu launched the social safety net programme to distribute N25,000 to 15 million homes for three months to observe the 2023 International Day for the Eradication of Poverty.
The Ministry of Humanitarian Affairs and Poverty Alleviation handled the $800 million World Bank loan project.
However, the Nigerian government halted the cash transfer scheme for further investigation and rejigging due to alleged fraud within the scheme.
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Information from the World Bank shows that the new loan approvals will bring Nigeria’s total approvals to $9.25 billion in three years, which shows a growing reliance on multilateral funding to support the economy.
Nigeria’s debt profile to hit N187 trillion
Legit.ng earlier reported that Nigeria’s debt profile would hit an unprecedented N187.79 trillion in 2025 as the country grappled with increasing borrowing costs, declining naira, and heightened government borrowing.
The projection was according to a report by an investment firm, CardinalStone, which projected that the country’s debt would reach N153.04 trillion last year.
The country’s dollar-denominated domestic bond, oversubscribed by $9 billion, is causing the debt.
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Source: Legit.ng
