The World Bank has approved three major projects for Nigeria, amounting to $1.57 billion in financing. This funding package, announced on Monday by World Bank Nigeria, is aimed at tackling governance challenges in education and healthcare, improving primary healthcare services, and enhancing Nigeria’s resilience to climate change through better dam safety and irrigation infrastructure.
The approval, made on September 26, 2024, underscores the World Bank’s ongoing commitment to strengthening Nigeria’s human capital and building resilience in the face of climate-related threats. The financing consists of a $1.5 billion loan and a $70 million grant, both designed to improve key sectors like education, healthcare, and water management, while also addressing poverty and boosting productivity across the country.
Project Breakdown
The $1.57 billion funding will be distributed across three significant initiatives:
HOPE-GOV Program ($500 million): This project aims to improve governance in the education and health sectors by addressing long-standing issues in financial and human resource management that have hindered effective service delivery. The program seeks to enhance transparency and accountability, ensuring that critical services, such as basic education and primary healthcare, reach Nigeria’s most vulnerable populations.
Primary Healthcare Provision Strengthening Program (HOPE-PHC) ($570 million): Designed to strengthen Nigeria’s healthcare system, this initiative focuses on improving health services for women, children, and adolescents. It aims to reduce maternal and under-five mortality rates, while also enhancing the resilience of the country’s healthcare infrastructure. The program will provide quality reproductive, maternal, newborn, child, and adolescent health services, benefiting approximately 40 million Nigerians, particularly in underserved areas. It is supported by a $500 million credit from the International Development Association (IDA) and a $70 million grant from the Global Financing Facility (GFF), with contributions from the UK Foreign, Commonwealth & Development Office (FCDO) and the Children’s Investment Fund Foundation (CIFF).
Sustainable Power and Irrigation for Nigeria (SPIN) Project ($500 million): This project will help Nigeria combat climate-induced challenges such as floods and droughts by improving dam safety, enhancing water resource management, and expanding irrigation services. The SPIN initiative is expected to benefit around 950,000 people, including farmers and livestock breeders, by boosting agricultural productivity through reliable irrigation systems. Additionally, the project includes plans for developing a master plan for hydropower generation, focusing on increasing energy production through public-private partnerships.
Addressing Nigeria’s Challenges
Dr. Ndiamé Diop, the World Bank Country Director for Nigeria, emphasized the critical role that investments in healthcare and education play in improving future employment prospects, productivity, and reducing poverty, particularly among Nigeria’s most vulnerable populations.
“Effective investment in the health and education of Nigerians today is key to increasing their future employment opportunities, productivity, and earnings while reducing poverty,” Diop said. “This new financing for human capital and primary healthcare will help address the complex challenges faced by Nigerians, especially women and girls, in accessing quality services. The SPIN program is timely and will protect Nigerians from the impacts of floods and droughts, while also increasing hydropower generation.”
Nigeria’s Growing Debt and Recent Financing
This new approval brings Nigeria’s total financing from the World Bank under President Bola Tinubu’s administration to $6.52 billion, amid concerns about the country’s rising external debt servicing costs. Earlier in 2024, the World Bank approved two other loan projects aimed at supporting Nigeria’s economic stability and helping vulnerable populations.
However, there have been concerns about the slow pace of disbursement for previously approved loans. According to Nairametrics, out of the $4.95 billion in loans approved by the World Bank earlier this year, only $774.99 million had been disbursed as of July 31, 2024, raising concerns about the implementation and utilization of these funds.
As of March 31, 2024, Nigeria’s total debt to the World Bank stood at $15.59 billion, according to data from the Debt Management Office (DMO). While the country continues to secure financing for critical development projects, the challenge remains in the effective execution and utilization of these funds to ensure lasting impact on the lives of Nigerians.