By Okafor Joseph Afam
October 10, 2024

President Bola Ahmed Tinubu has borrowed a staggering $6.45 billion from the World Bank within just 16 months of his administration, according to a document on the global lender’s website.

The report revealed that the World Bank approved no fewer than 36 loan requests to the Federal Government of Nigeria, totaling $24.088 billion over the last five years. These loans are intended to support critical areas of development in Nigeria, including healthcare, education, and infrastructure, as well as measures to address climate change.

On September 26, 2024, the World Bank approved an additional $1.57 billion for Nigeria to enhance human capital development, particularly by improving health services for women, children, and adolescents. Part of the financing is also designated to mitigate the impact of climate change through improved dam safety and irrigation systems in the country.

A breakdown of the latest funds reveals that $500 million is allocated to the HOPE-GOV program, which addresses governance challenges hindering the delivery of education and health services. Another $570 million has been earmarked for the Primary Healthcare Provision Strengthening Program (HOPE-PHC), with an additional $500 million directed toward the Sustainable Power and Irrigation for Nigeria Project (SPIN).

The combined HOPE-GOV and HOPE-PHC programs are designed to help the Nigerian government improve the quality of basic education and primary healthcare services, which are vital for the nation’s human capital development. The World Bank emphasized that these initiatives will boost service delivery in two key sectors, positioning the country for long-term economic growth.

The SPIN project aims to enhance dam safety and water resource management, which will support both hydropower and irrigation in select areas across Nigeria. Additionally, the SPIN initiative will safeguard citizens from climate-related risks such as floods and droughts, while improving irrigation and drainage services over 40,000 hectares of land. Up to 950,000 people, including farmers and livestock breeders, are expected to benefit from more reliable water supply and increased agricultural productivity.

In his remarks, Ndiamé Diop, World Bank’s country director for Nigeria, highlighted the importance of these projects, stating: “Effective investment in the health and education of Nigerians today is central to increasing their future employment opportunities, productivity, and earnings, while reducing poverty among the most vulnerable. This new financing for human capital and primary healthcare will help address the complex challenges faced by Nigerians, particularly women and girls.”

Breakdown of World Bank Loans to Nigeria

The World Bank’s financial support to Nigeria has been significant since 2020. In that year, the lender approved 15 loan requests amounting to $6.36 billion for various projects, including $510 million for rural access and agricultural marketing, and $750 million for Nigeria’s COVID-19 response.

In 2021, loans amounting to $3.2 billion were approved for six projects. This trend continued in 2022 with loans totaling $1.26 billion, covering areas such as livestock productivity and business environment reforms.

In 2023, Nigeria secured $2.7 billion in loans for a variety of projects, including $750 million for the Nigeria-AF power sector recovery operation and $500 million for the Nigeria Women Program Scale-up.

As of 2024, the World Bank has already approved $3.82 billion in loans for Nigeria across five projects, which also includes a $70 million grant.

The scale of borrowing under Tinubu’s administration is sparking conversations on Nigeria’s growing debt burden, as the country looks to balance these new funds with sustainable economic reforms.