Nigeria Secures Another $500 Million World Bank Loan for Economic Stimulus Programme
........ to Receive Final Approval for Two Additional Loans Today
By: Olufemi Orunsola
The World Bank has approved a fresh $500 million loan to Nigeria to support the country’s Community Action for Resilience and Economic Stimulus (CARES) Programme.
OPEN TELEVISION NAIJA (OTN) INews Reports based on information obtained from the bank’s website on Sunday that the approval, which took place on March 28, 2025, marks a significant step in addressing Nigeria’s economic challenges through expanded access to livelihood support, food security services, and grants for poor and vulnerable households and firms, amid biting economic hardships in the country.
OTN News further reports as gathered that the project, officially titled the NIGERIA: Community Action (for) Resilience and Economic Stimulus (N-CARES Programme), aims to provide essential support to households affected by economic downturns and to bolster community resilience.
Among other things, it will target vulnerable populations, offering grants to both households and small businesses to mitigate the impact of economic hardships.
The loan approval is expected to significantly enhance Nigeria’s efforts to stimulate the economy through grassroots support, particularly amid ongoing challenges such as inflation and high living costs.
The stimulus package will focus on improving food security and economic opportunities for communities hit hardest by recent economic fluctuations.
OTN News further gathered that two additional world bank loans are expected to be approved for Nigeria this week, apart from the $500 million loan approved.
Meanwhile, both projects are currently in the negotiation stage and are expected to receive final approval on March 31, 2025 (Monday).
While one of these is aimed at accelerating nutrition results in Nigeria, with an estimated commitment amount of $80 million, the second is focused on enhancing quality basic education for all, with a proposed commitment amount of approximately $552 million.
According to Nairametrics, these additional loans are part of a broader strategy by the World Bank to support Nigeria’s development agenda, addressing key areas such as healthcare, education, and community resilience.
In the mean time, information obtained from Nairametrics says so far, about 11 different loan projects have been approved for Nigeria by the World Bank under the administration of President Bola Tinubu.
It is also reported by the Nigeria-centric platform that the Federal Government, under the leadership of President Bola Tinubu, has secured loans worth $7.45 billion from the World Bank within the last two years of assuming office.
Based on data obtained from the external debt report released by the Debt Management Office (DMO), the World Bank’s share of Nigeria’s debt totals $17.32 billion, with the majority owed to the International Development Association (IDA), which accounts for $16.84 billion, which represents 39.14% of Nigeria’s total external debt.
Nairametrics earlier reported that Nigeria received only about 16% of the total loans earlier approved by the World Bank under Tinubu.
This implies that, 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.
While some financial experts commend the Nigerian government for obtaining multiple World Bank loans to drive the economy of the populous African country, there"s been criticisms of the Nigeria government over the utilization and monitoring of the efficiency and impacts of the facility on the target beneficiaries of projects implemented with the loans namely, the vulnerable who are the worst hit by the harsh social economic realities prevalent in the country in recent times.
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