The World Bank is set to approve $632 million in fresh loans for Nigeria today, Monday. The move aims to bolster critical sectors such as nutrition and basic education, even as Nigeria’s growing external debt profile raises red flags among economic analysts.
According to the World Bank’s official website, the loan package includes:
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$80 million for the Accelerating Nutrition Results in Nigeria 2.0 project.
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$552 million for the HOPE for Quality Basic Education for All program.
These initiatives, currently in the final approval phase, are expected to enhance public sector delivery in health and education, two areas heavily impacted by underfunding and systemic inefficiencies.
The upcoming loan approval comes just days after the World Bank approved a $500 million loan for Nigeria’s Community Action for Resilience and Economic Stimulus (CARES) Programme, designed to offer direct support to vulnerable households and small businesses struggling under inflation and economic hardship.
However, concerns are mounting over Nigeria’s increasing dependence on foreign loans. Since 2023, the World Bank has approved over $9.25 billion in loans for Nigeria, with disbursements rising from $2.7 billion in 2023 to $4.32 billion in 2024, and another $2.23 billion expected in 2025 for programs in healthcare, digital infrastructure, and economic resilience.
Despite the inflows, implementation remains a challenge. For instance, only $315 million out of an $800 million loan for the National Social Safety-Net Program Scale-Up has been disbursed, amid concerns over fraud investigations linked to a suspended government cash transfer initiative.
As Nigeria navigates economic recovery, stakeholders call for improved transparency, fiscal discipline, and stronger institutional oversight to ensure these funds deliver real impact for citizens.
The country’s debt burden continues to rise, with data from the Debt Management Office showing that Nigeria’s external debt to the World Bank has reached $17.32 billion. Additionally, the nation spent $5.47 billion on external debt servicing over the last 14 months, further straining public finances.
Nigeria’s Finance Minister, Wale Edun, has stressed the government’s shift away from commercial borrowing toward revenue generation and private sector investments. “We are at that optimization stage, where there is less focus on borrowing,” he said, emphasizing the need for alternative funding sources.