An official statement released on Monday by the World Bank in Nigeria announced the approval of $1.57 billion to finance education, health, and climate change-related challenges.
This funding aims to support Nigeria in addressing governance issues in education and healthcare, improve primary healthcare services, and enhance resilience to climate change through better dam safety and irrigation infrastructure.
The approval, made on September 26, 2024, underscores the World Bank’s commitment to strengthening Nigeria’s human capital and building resilience against climate threats. Records reveal that Nigeria has secured a total of $6.52 billion in new financing from the World Bank under President Bola Tinubu’s administration, amid concerns over rising external debt servicing costs.
Earlier this year, the World Bank announced two loan projects to bolster Nigeria’s economic stability and support vulnerable populations. Notably, Nigeria received only about 16% of the total loans approved by the World Bank under Tinubu’s leadership.
This financing package consists of a $1.5 billion loan and a $70 million grant, forming part of broader efforts to enhance key sectors such as education, healthcare, and water management while addressing poverty and boosting productivity.
The $1.57 billion funding is allocated across three major projects. The first, the HOPE-GOV program, will receive $500 million to improve governance in education and health. This program aims to tackle underlying issues in financial and human resource management that have hindered service delivery, enhancing transparency and accountability while ensuring critical services reach vulnerable populations.
Another $570 million is designated for the Primary Healthcare Provision Strengthening Program (HOPE-PHC), which focuses on improving Nigeria’s healthcare system, particularly for women, children, and adolescents. The program aims to reduce maternal and under-five mortality rates and strengthen Nigeria’s health infrastructure. It is expected to benefit around 40 million Nigerians, especially those in underserved areas.
This initiative is funded by a $500 million International Development Association (IDA) credit and a $70 million grant from the Global Financing Facility (GFF), supported by contributions from the UK Foreign, Commonwealth & Development Office (FCDO) and the Children’s Investment Foundation Fund (CIFF).
The remaining $500 million will be allocated to the Sustainable Power and Irrigation for Nigeria Project (SPIN), which aims to mitigate climate-induced challenges like floods and droughts. The SPIN program will enhance dam safety, improve water resource management, and expand irrigation services, benefiting around **950,000 people**, including farmers and livestock breeders. It also includes plans for a master plan for hydropower generation to boost energy production through public-private partnerships.
Dr. Ndiamé Diop, World Bank Country Director for Nigeria, emphasized the importance of investing in Nigerians’ health and education to improve future employment opportunities and reduce poverty. He stated, “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.”
He added that the new financing aims to address significant challenges Nigerians face, particularly women and girls, in accessing quality healthcare and services. Diop noted that the SPIN program is timely, as it will protect Nigerians from floods and droughts while increasing hydropower generation, delivering enormous benefits to people and livelihoods.
According to records, out of $4.95 billion in 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. Data from the Debt Management Office (DMO) indicates that Nigeria owes the World Bank a total of $15.59 billion as of March 31, 2024.
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