The World Bank is set to approve three major loan projects for Nigeria in 2025, totaling $1.65 billion, aimed at addressing critical development challenges in the country. The loans, which are currently in the pipeline, will focus on internally displaced persons (IDPs), education, and nutrition enhancement.
According to the World Bank’s official website, the financing package is designed to support Nigeria’s social and economic recovery, particularly in vulnerable sectors requiring urgent intervention.
The first project, Solutions for the Internally Displaced and Host Communities Project, is set to receive $300 million. The project, which is still in the concept review phase, seeks to provide sustainable solutions for the social and economic challenges faced by internally displaced persons and their host communities. Approval for this project is scheduled for April 8, 2025.
The second project, HOPE for Quality Basic Education for All, is expected to secure $553.8 million. Also in the concept review stage, this initiative aims to enhance the quality of basic education in Nigeria and is slated for approval on March 20, 2025.
The largest share of the proposed financing, $800 million, is allocated to the Accelerating Nutrition Results in Nigeria 2.0 project. The World Bank is scheduled to make a decision on this project by February 20, 2025.
The $1.65 billion in loans forms part of the World Bank’s ongoing commitment to supporting Nigeria’s development efforts. The loans will help address long-standing issues in key sectors and are expected to play a pivotal role in the country’s recovery and growth.
In total, Nigeria has secured loans worth $6.95 billion from the World Bank under President Bola Tinubu’s administration. This amount includes a recent $500 million loan approved on December 13, 2024, for the Rural Access and Agricultural Marketing Project—Scale Up. This initiative aims to improve access to markets, schools, and healthcare in rural communities, fostering social cohesion.
This loan is the 10th approved for Nigeria since President Tinubu took office. Previous loans have supported sectors ranging from power to women’s empowerment. Notably, the Power Sector Recovery Performance-Based Operation received $750 million in the early months of the administration, and a $500 million loan for women’s empowerment was approved in June 2023.
The World Bank also approved several large-scale projects in September 2024, including a $500 million loan for governance reforms in the education and health sectors, a $570 million loan for primary healthcare improvements, and $500 million for a sustainable power and irrigation project aimed at mitigating climate-related challenges.
The World Bank currently holds $16.32 billion of Nigeria’s external debt, primarily through its concessional arm, the International Development Association (IDA), which accounts for 38% of Nigeria’s total external debt. The remaining portion of the debt is owed to the International Bank for Reconstruction and Development (IBRD), which represents 1.13% of the total external debt.
Data from the Debt Management Office reveals that Nigeria spent $3.58 billion servicing its foreign debt in the first nine months of 2024, a 39.77% increase from the previous year. The World Bank’s continued financial support underscores its role in Nigeria’s development, as the country works to stabilize its economy and address critical issues in sectors such as education, healthcare, and infrastructure.
