The World Bank has approved three new projects for Nigeria, totalling $1.57 billion in financing.
According to a statement released on Monday by World Bank Nigeria, this new funding will support the country in addressing governance challenges in education and healthcare, improving primary healthcare services, and increasing resilience to climate change through enhanced dam safety and irrigation infrastructure.
The approval, made on September 26, 2024, highlights the World Bank’s commitment to strengthening Nigeria’s human capital and building resilience in the face of climate threats.
This financing package, which includes $1.5 billion loan and $70 million grant, is part of broader efforts to improve key sectors such as education, healthcare, and water management, while also tackling poverty and boosting productivity.
Breakdown of approved projects
- The $1.57 billion funding is divided across three major projects. The first, the HOPE-GOV program, will receive $500 million to improve governance in the education and health sectors. This program is designed to address underlying issues in financial and human resource management that have hindered service delivery. The aim is to enhance transparency and accountability while ensuring that critical services such as basic education and primary healthcare reach the most vulnerable populations.
- Another $570 million is earmarked for the Primary Healthcare Provision Strengthening Program (HOPE-PHC). This initiative is pivotal in improving Nigeria’s healthcare system, particularly for women, children, and adolescents. The program focuses on reducing maternal and under-five mortality rates and enhancing the resilience of Nigeria’s health infrastructure.
- Under HOPE-PHC, the project will provide quality reproductive, maternal, newborn, child, and adolescent health services. A total of 40 million Nigerians, especially those in underserved areas, are expected to benefit from the program. The initiative is funded by a $500 million International Development Association (IDA) credit, along with an additional $70 million grant from the Global Financing Facility (GFF), which includes contributions from the UK Foreign, Commonwealth & Development Office (FCDO) and the Children’s Investment Foundation Fund (CIFF). These funds will help bridge gaps in primary healthcare financing, while also supporting sustainable financing for family planning.
- The remaining $500 million will be allocated to the Sustainable Power and Irrigation for Nigeria Project (SPIN), which aims to protect Nigeria from climate-induced challenges such as floods and droughts. Through enhanced dam safety measures, improved water resource management, and the expansion of irrigation services, the SPIN program will benefit around 950,000 people, including farmers and livestock breeders.
- The project will help Nigeria enhance its agricultural productivity through more reliable and efficient irrigation systems. Also, the SPIN project includes plans to develop a master plan for hydropower generation, with a focus on boosting energy production through public-private partnerships.
New financing to address difficulties faced by Nigerians
In the statement, Dr Ndiamé Diop, World Bank Country Director for Nigeria, emphasized that investing in the health and education of Nigerians is crucial for improving future employment opportunities, productivity, and reducing poverty.
He added that the new financing will address the significant challenges faced by Nigerians, particularly women and girls, in accessing quality healthcare and services.
Diop said: “Effective investment in the health and education of Nigerians today is central to increasing their future employment opportunities, productivity, and earnings, while reducing poverty of the most vulnerable. This new financing for human capital and primary healthcare will help to address the complex difficulties faced by Nigerians especially women and girls around access and quality of services, but also the governance arrangements that also explain these difficulties.
“The SPIN program is timely and will protect Nigerians from floods and droughts in the areas where it will be implemented, while enabling an increase in hydropower generation. The direct positive impact of this project on people and livelihoods is enormous, The World Bank is pleased to work with the government and other stakeholders to deliver this program.”
What you should know
So far, Nigeria has secured a total of $6.52 billion in new financing from the World Bank under the administration of President Bola Tinubu amid concerns over the country’s rising external debt servicing costs.
Earlier this year, the World Bank recently announced the approval of two loan projects aimed at bolstering Nigeria’s economic stability and supporting its vulnerable populations.
Nairametrics earlier reported that Nigeria received only about 16% of the total loans earlier approved by the World Bank under Tinubu.
That is, out of $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.
Data from the external debt stock report of the Debt Management Office (DMO) shows that Nigeria owes the World Bank a total of $15.59 billion as of March 31, 2024.
