World Bank Approves New $1.57bn Loan For Nigeria

World Bank has approved three new loans for Nigeria, totaling $1.57 billion, aimed at boosting healthcare, education, and resilience to climate challenges.

The World Bank approved this funding to help the Nigerian government improve healthcare for women, children, and adolescents, as well as strengthen the country’s ability to handle climate-related issues like floods and droughts by enhancing dam safety and irrigation systems.

The financial package includes $500 million for addressing governance issues in education and healthcare (HOPE-GOV), $570 million for strengthening primary healthcare (HOPE-PHC), and $500 million for the Sustainable Power and Irrigation for Nigeria Project (SPIN).

HOPE-GOV and HOPE-PHC will focus on improving services in basic education and primary healthcare, which are essential to developing Nigeria’s human capital. The SPIN project will focus on improving dam safety and water resource management for hydropower and irrigation in key areas of the country.

The HOPE-GOV program will tackle governance weaknesses in education and healthcare, aiming to improve financial management, transparency, and the performance of teachers and healthcare workers. It will also increase funding availability for education and healthcare at the federal, state, and local levels.

The HOPE-PHC project, part of Nigeria’s Health Sector Renewal Initiative, aims to improve maternal, newborn, child, and adolescent health services, with the goal of reducing maternal and child mortality rates. This program is expected to benefit 40 million people, particularly vulnerable groups, and is backed by $500 million from the International Development Association (IDA) and $70 million in grants from the Global Financing Facility for Women, Children, and Adolescents (GFF).

The SPIN program will help protect Nigerian communities from floods and droughts by improving dam safety and irrigation services, covering an area of 40,000 hectares. Up to 950,000 people, including farmers and livestock breeders, will benefit from better water management and increased agricultural productivity. The project will also support the development of a master plan for hydropower and establish a public-private partnership for a new hydropower project.

Dr. Ndiamé Diop, the World Bank Country Director for Nigeria, emphasized that investing in health and education is key to boosting future employment, productivity, and reducing poverty. He added that the SPIN project will have a significant positive impact by protecting communities from climate threats while increasing hydropower generation.

KanyiDaily recalls that President Bola Tinubu had asked for an approval from the Senate to borrow the sum of $800 million.