Nigeria has secured $4.95 billion in loans from the World Bank under President Bola Tinubu’s administration amidst concerns about escalating external debt servicing expenses.
Since June 9, 2023, six loan projects have been approved, targeting various sectors:
- A $750 million loan for enhancing the power sector aimed to boost performance-based operations in power sector recovery.
- On June 27, 2023, a $500 million loan to scale up the Nigeria for Women Program was approved to advance women’s empowerment.
- In September 2023, the AGILE project received a $700 million loan to improve adolescent girls’ education.
- A $750 million loan for renewable energy, approved on December 14, 2023, for expanding electricity access via renewable energy solutions.
- A combined $2.25 billion loan package, including $1.5 billion for economic stabilization reforms, to enhance fiscal and non-oil revenues and expand social safety nets.
- A $750 million loan for resource mobilization reforms to boost non-oil revenues and safeguard oil and gas revenues.
Nigeria became the top recipient of World Bank loans 2022, receiving $2.9 billion. As of December 31, 2023, Nigeria’s debt to the World Bank stood at $15.45 billion.
Despite these investments, concerns persist over Nigeria’s rising debt service costs. Foreign debt servicing expenses surged by 96% in the first five months of 2024, reaching $2.19 billion compared to $1.12 billion in the same period in 2023. This escalating burden could divert resources from crucial sectors like healthcare, education, and infrastructure, exacerbating socio-economic challenges.
