The World Bank has approved an additional $1.57 billion loan for the Nigerian government to fund critical projects aimed at improving governance, healthcare, education, and climate resilience.
In a statement released on Monday, September 30, 2024, the Washington-based financial institution highlighted that the funding would address challenges in education, enhance primary healthcare services, and increase the country’s resilience to climate change through improved dam safety and irrigation infrastructure.
“The new funding will play a crucial role in strengthening Nigeria’s human capital while also building resilience against the growing threats of climate change,” the statement read.
The loan approval, made on September 26, 2024, includes a $1.5 billion loan and a $70 million grant, as part of the World Bank’s broader efforts to tackle poverty and boost productivity in key sectors like education, healthcare, and water management.
This announcement follows a previous $2.25 billion loan approved by the World Bank in June 2023, which supported the economic policies of President Bola Ahmed Tinubu. However, Nigeria’s rising debt burden, which stood at N121.67 trillion as of March 2024, continues to raise concerns among financial experts.
As the country faces a growing infrastructural deficit, the approval of this loan has reignited discussions about Nigeria’s financial future. Many experts continue to express worries over the nation’s increasing debt, with some calling for more sustainable solutions.
“This loan will help Nigeria navigate pressing challenges, but it also adds to the heavy debt burden the country is already struggling with,” said a financial analyst.
