FG Seeks Fresh $300 Million Loan From World Bank - Report

Israel Adeleke 

OPEN TELEVISION NAIJA (OTN) News reports that a report from the World Bank showed that the Federal Government of Nigeria has engaged the World Bank for a fresh $300m loan to strengthen Nigeria’s health security infrastructure.

OTN News further reports that this information which was obtained from the World Bank showed that the loan, which is under consideration, will be implemented by the Nigeria Centre for Disease Control with the Federal Ministry of Finance acting as borrower on behalf of the Federal Government.

According to the piece of information on the World Bank website, the loan project is expected to “increase regional collaboration and health system capacities to prevent, detect, and respond to health emergencies in the Federal Republic of Nigeria.”

The project is however, currently in the pipeline stage, with the disclosure date scheduled for February 6, 2025.

Furthermore, OTN News Observes that the World Bank board is expected to give its approval on July 30, 2025, following necessary assessments, which the appraisal is set for April 14, 2025, and implementation will commence in the 2026 fiscal year.

OTN News recalls that a document on the concept of environmental and social review seen by The PUNCH on Friday, has it that the Nigeria Health Security Programme aligns with broader government efforts to enhance disease surveillance, diagnostic capabilities, emergency response, and laboratory networks across the 36 states and the Federal Capital Territory.

The programme’s primary objective is to enhance regional collaboration and strengthen Nigeria’s health systems to deal with emergencies. It falls within the World Bank’s investment in health, nutrition, and population sectors across Western and Central Africa.

According to the Environmental and Social Review Summary of the project, HeSP will expand molecular laboratory capacity, upgrade primary healthcare centres, establish emergency operation centres, and construct warehouses.

It will also deploy mobile laboratories and install water, sanitation, and hygiene facilities alongside solar energy systems to support health infrastructure improvements.

Although the total project cost is yet to be determined, the World Bank has committed $300m to the initiative. The funds aim to bolster Nigeria’s pandemic preparedness and improve response mechanisms for public health threats.

The initiative comes as Nigeria strengthens its public health infrastructure following lessons from previous outbreaks, including COVID-19. If approved, the loan will support the NCDC in improving disease surveillance, diagnostics, emergency response, and laboratory services.

Nigeria has previously secured funding from international financial institutions to boost healthcare resilience, including financing for vaccine procurement, emergency medical services, and infrastructure development.

However, the project, categorised as a high-priority public health intervention, carries substantial environmental and social risks due to potential health, safety, and ecological concerns associated with infrastructure expansion.

Identified risks include increased medical waste, occupational hazards, and heightened energy and water demands. Social risks range from potential grievances from stakeholders to concerns over land acquisition and implementing health interventions in conflict-prone areas.

The Federal Government was engaging the World Bank for two fresh loans totalling $580m, which are expected to be approved in March 2025.

The projects, Accelerating Nutrition Results in Nigeria 2.0 and HOPE for Quality Basic Education for All, are expected to receive final approvals on March 27 and March 20, 2025, respectively.

The HOPE for Quality Basic Education for All programme has a commitment of $552.18m, with $500m coming from the World Bank and an additional $54m from other sources.

The second loan project, the Accelerating Nutrition Results in Nigeria 2.0 project, is expected to secure $80m from the World Bank to address malnutrition and food insecurity.

The PUNCH further observed that the Federal Government, under the leadership of President Bola Tinubu, has secured loans worth $6.95bn from the World Bank in about 18 months. Not less than 10 loan projects have been approved by the World Bank under the current administration.

According to data from the external debt report released by the Debt Management Office, the World Bank’s share of Nigeria’s debt totals $17.32bn, with the majority owed to the International Development Association, which accounts for $16.84bn, representing 39.14 per cent of Nigeria’s total external debt.

The International Bank for Reconstruction and Development, another arm of the World Bank, is owed $485.08m, or 1.13 per cent.