The World Bank has approved three new projects for Nigeria, providing a total of $1.57 billion in financing to address critical challenges in governance, healthcare, and climate resilience. According to a statement released by World Bank Nigeria on September 26, 2024, this new funding aims to improve primary healthcare services, strengthen governance in education and healthcare sectors, and increase Nigeria’s resilience to climate change through enhanced dam safety and irrigation infrastructure.
The World Bank’s commitment underscores its support for Nigeria’s efforts to build human capital and enhance infrastructure amid growing environmental threats. The package includes a $1.5 billion loan and a $70 million grant, forming part of broader initiatives to reduce poverty, boost productivity, and improve service delivery in key sectors.
Breakdown of Approved Projects
The $1.57 billion funding is allocated across three major projects aimed at addressing long-standing challenges in Nigeria’s education, healthcare, and water management systems:
HOPE-GOV Program ($500 million):
This project will focus on improving governance in the education and healthcare sectors, addressing issues related to financial and human resource management. The aim is to enhance transparency, accountability, and service delivery to ensure basic education and primary healthcare reach Nigeria’s most vulnerable populations.
Primary Healthcare Provision Strengthening Program (HOPE-PHC) – $570 million:
A pivotal initiative to bolster Nigeria’s healthcare system, especially for women, children, and adolescents, the HOPE-PHC program aims to reduce maternal and child mortality rates. The project is expected to benefit 40 million Nigerians, primarily those in underserved areas. The funding includes a $500 million credit from the International Development Association (IDA) and a $70 million grant from the Global Financing Facility (GFF), with contributions from international partners like the UK Foreign, Commonwealth & Development Office (FCDO) and the Children’s Investment Foundation Fund (CIFF). These funds will bridge gaps in primary healthcare financing and support sustainable family planning efforts.
Sustainable Power and Irrigation for Nigeria (SPIN) Project – $500 million:
This project aims to protect Nigeria from climate-related challenges such as floods and droughts by improving dam safety, water resource management, and expanding irrigation infrastructure. The SPIN program is expected to benefit 950,000 people, including farmers and livestock breeders, by enhancing agricultural productivity through more reliable and efficient irrigation systems. Additionally, the project includes plans to develop a master plan for hydropower generation, aiming to boost Nigeria’s energy production through public-private partnerships.
Addressing Nigeria’s Challenges
In the statement, World Bank Country Director for Nigeria, Dr. Ndiamé Diop, emphasized the importance of investing in human capital as a means of enhancing future employment opportunities, productivity, and reducing poverty, especially for women and girls.
“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,” Diop stated. He also highlighted that the new financing will tackle the structural governance issues that hinder service delivery in critical sectors such as healthcare and education.
Diop further noted the significance of the SPIN project in mitigating the impacts of climate change. “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,” he said.
Nigeria’s Growing External Debt
The approval of these projects brings Nigeria’s total new financing from the World Bank to $6.52 billion under the administration of President Bola Tinubu. However, concerns remain over Nigeria’s rising external debt, particularly its growing costs for debt servicing. According to data from Nigeria’s Debt Management Office (DMO), the country owed the World Bank $15.59 billion as of March 31, 2024.
While the new funding aims to address pressing governance and infrastructure issues, the slow disbursement of previously approved loans has raised questions about the pace of project implementation. Of the $4.95 billion previously approved by the World Bank under the Tinubu administration, only 16%—approximately $775 million—had been disbursed as of July 31, 2024.
Outlook
The new financing package is expected to play a significant role in improving Nigeria’s healthcare and education systems while boosting climate resilience. However, the successful implementation of these projects will depend on efficient governance and the timely utilization of funds. The World Bank, alongside Nigeria’s government, will need to ensure that these resources are effectively deployed to tackle the country’s most pressing challenges.
