World Bank approves $500m loan to strengthen Nigeria’s economic program
World Bank approves $500m loan to strengthen Nigeria’s economic program
The World Bank has approved a $500 million loan to Nigeria to support the country’s Community Action for Resilience and Economic Stimulus Program.
According to information obtained from the bank’s website on Sunday, the approval, which took place on March 28, 2025, marks a significant step in addressing Nigeria’s economic challenges through expanded access to livelihood support, food security services, and grants for poor and vulnerable households and firms.
The project, officially titled the Nigeria: Community Action for Resilience and Economic Stimulus Program, aims to provide essential support to households affected by economic downturns and bolster community resilience. It will target vulnerable populations, offering grants to both households and small businesses to mitigate the impact of economic hardships.
The loan approval is expected to significantly enhance Nigeria’s efforts to stimulate the economy through grassroots support, particularly amid ongoing challenges such as inflation and high living costs.
The stimulus package will focus on improving food security and economic opportunities for communities hit hardest by recent economic fluctuations.
Two more loans to be approved this week
In addition to the $500 million loan approved for the Community Action Program, two more loans are expected to be approved this week.
One of these is aimed at accelerating nutrition results in Nigeria, with an estimated commitment amount of $80 million.
The second is focused on enhancing quality basic education for all, with a proposed commitment amount of approximately $552 million.
Both projects are currently in the negotiation stage and are expected to receive final approval on March 31, 2025.
These additional loans are part of a broader strategy by the World Bank to support Nigeria’s development agenda, addressing key areas such as healthcare, education, and community resilience.
Nigeria’s debt profile
So far, about 11 different loan projects have been approved by the World Bank under the administration of President Bola Tinubu, amounting to $7.45 billion in less than two years.
Recall that Nigeria had, before now, received only about 16% of the total loans earlier approved by the World Bank under Tinubu’s administration. Out of the $4.95 billion earlier approved loans, only $774.99 million had been disbursed as of July 31, 2024, raising concerns about the pace of project implementation and fund utilization.
According to data from the external debt report released by the Debt Management Office (DMO), the World Bank’s share of Nigeria’s debt totals $17.32 billion, with the majority owed to the International Development Association (IDA), accounting for $16.84 billion, which represents 39.14% of Nigeria’s total external debt.
The International Bank for Reconstruction and Development (IBRD), another arm of the World Bank, is owed $485.08 million, or 1.13%.
