Politics

BREAKING: Tinubu’s govt seeks another $500 Million loan from World Bank amid economic hardship

Nigeria is reportedly in talks to secure a fresh $500 million loan from the World Bank in May 2024, primarily focused on bolstering human capital development in the country.

The loan, named the Nigeria Human Capital for Opportunities and Empowerment (HOPE), is a significant investment to improve human capital service delivery, particularly in basic education and primary healthcare.

As of September 30, 2023, Nigeria’s external debt to the World Bank stood at $14.58 billion.

Initially envisioned at $1.5 billion, the proposed HOPE project has been scaled down to $500 million, according to Daily Times.

The project’s development objective is to enhance the allocation and utilization of financial and human resources in basic education and primary healthcare.

The loan, subject to approval by the World Bank Group’s board, is slated for implementation in 2024, with an anticipated approval date of May 23, 2024. The appraisal date is estimated to be April 16, 2024.

The implementing agencies for the project include the Basic Healthcare Provision Fund (BHCPF), the Federal Ministry of Education, the Federal Ministry of Health, and the Universal Basic Education Commission.

The project will be open to all 36 states in Nigeria and the Federal Capital Territory, focusing on achieving results in basic and junior education and improving universal health coverage, particularly for women.

Nigeria has recently secured several loans from the World Bank, totalling $2.7 billion, covering various sectors such as power, women empowerment, girls’ education, and renewable energy.

The country’s reliance on external funding for national development projects has led to discussions and concerns about the rising external debt servicing costs.

According to the World Bank’s International Debt Report for 2023, Nigeria was the top recipient of its fresh loans in 2022, receiving about $2.9 billion.