The World Bank is expected to approve $632 million in loans to Nigeria today, focusing on nutrition and education programs. This follows a recent $500 million loan for economic resilience. Delays in previous fund disbursements raise concerns, as Nigeria plans to secure six more loans totaling $2.23 billion in 2025, increasing reliance on external funding amid growing debt issues.
The World Bank is poised to approve new loans totaling $632 million to Nigeria, aimed at addressing significant areas such as nutrition and basic education. Among these, an $80 million loan for the Accelerating Nutrition Results in Nigeria 2.0 project and a $552 million loan for the HOPE for Quality Basic Education for All programme are expected to be finalized today. This loan approval is part of a broader initiative by the World Bank to assist Nigeria in its developmental goals, specifically in healthcare, education, and community resilience.
These additional funds are anticipated to enhance government efforts in improving nutrition and access to quality education for Nigerian children. In a related development, the World Bank had previously sanctioned a $500 million loan last Friday to support Nigeria’s Community Action for Resilience and Economic Stimulus Programme, aiming to bolster the economy amid challenges such as rising inflation and living costs. The initiative focuses on providing support to vulnerable households and small businesses impacted by economic downturns.
However, there have been delays in disbursing funds from earlier approved loans, notably the National Social Safety-Net Program Scale Up, which has seen only $315 million disbursed from the total $800 million authorized. This halt is likely linked to identified fraud issues within the program. Consequently, the Nigerian Government has suspended the cash transfer program in light of misappropriations and ongoing investigations concerning former officials related to the programme’s management.
Looking ahead, Nigeria intends to secure an additional six loans totaling $2.23 billion from the World Bank in 2025. This would raise the total approved loans to approximately $9.25 billion over three years, indicating a growing dependency on external funding to support critical sectors like infrastructure, healthcare, and education.
Under President Bola Tinubu’s administration, the government’s borrowing from the World Bank has surged, raising concerns about the country’s escalating debt burden, with current external debts standing at about $17.32 billion. Most of this debt is attributed to the International Development Association. Meanwhile, the Finance Minister has indicated a shift in focus towards alternative funding sources, advocating for revenue generation and strategic investments to mitigate the reliance on borrowing while ensuring effective resource management.
Economists are cautioning against the country’s borrowing trend. While borrowing can facilitate development, experts like Dr. Aliyu Ilias criticise the current approach of further increasing debt despite recent revenue gains from fiscal reforms. Calls for a more strategic borrowing policy have emerged, with voices like Dr. Tayo Aduloju emphasizing the need for a balanced approach between domestic and external finances to prioritize essential infrastructure projects and attract foreign direct investment for sustainable growth.
In conclusion, the anticipated approval of loans amounting to $632 million from the World Bank to Nigeria signifies a critical step in addressing nutrition and education needs amidst rising fiscal pressures. While these funds aim to enhance governmental efforts in economic resilience, growing concerns regarding the nation’s escalating debt burden and the efficiency of fund utilization necessitate strategic borrowing policies. The emphasis on reliance for foreign support highlights the delicate balance the Nigerian government must achieve to ensure sustainable economic development without exacerbating existing financial challenges.
Original Source: punchng.com
