Federal Government Seeks $2bn Loan from World Bank for Key Infrastructure Projects

By Osaiyekemwen Confidence

The Nigerian Federal Government has begun the process of securing a fresh $2 billion loan from the World Bank to fund crucial infrastructural projects. The loan request, submitted by the Ministry of Finance, is currently undergoing a concept review, the initial stage required before negotiations and final approval.

According to World Bank documents, the government has submitted four separate loan applications, each targeting key sectors such as healthcare, agriculture, and infrastructure. These projects are considered critical for Nigeria’s sustainable development and economic stability.

If granted, this new loan will bring Nigeria’s total borrowing from the World Bank in 2024 to $4.25 billion and increase the total loans under President Bola Tinubu’s administration to $6.95 billion. Each project is expected to receive $500 million from the Washington-based financial institution.

One of the projects, the Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE), seeks $500 million to enhance human capital development through improved education, healthcare, and social protection services. The HOPE project is set for approval on September 17, 2024.

Another $500 million is earmarked for the Nigeria: Primary Healthcare Provision Strengthening Program, which aims to enhance healthcare infrastructure, train healthcare professionals, and improve service delivery across the country. This program is expected to be approved on September 23, 2024.

The Sustainable Power and Irrigation for Nigeria Project, set for approval on September 26, 2024, will also receive $500 million. It aims to boost sustainable power generation and irrigation, which are essential for agricultural and industrial development.

The fourth project, the Rural Access and Agricultural Marketing Project – Scale Up, will receive $500 million to improve rural infrastructure and enhance market access for agricultural products. This project is scheduled for approval on November 28, 2024.

These loan requests highlight the government’s commitment to tackling key challenges in healthcare, energy, and agriculture, which are crucial for driving economic growth and reducing poverty in Nigeria