The World Bank has approved a $1.57 billion loan package for Nigeria to support the country’s economic reforms and shift from economic stabilization to inclusive growth.
The loan, part of the “Nigeria Actions for Investment and Jobs Acceleration” initiative, aims to strengthen ongoing economic reforms, promote job creation, and accelerate private investment.
The loan package consists of three projects: the HOPE-GOV Programme with $500 million in financing, the Primary Healthcare Provision Strengthening Programme (Hope-PHC) with $570 million, and the Sustainable Power and Irrigation for Nigeria Project (SPIN) with $500 million.
These projects will be implemented through the Federal Ministry of Finance and focus on improving human capital, healthcare, and infrastructure.
According to the World Bank, the loan will help catalyze private sector-led investment, deepen capital markets and digital services, ease inflationary pressures, and promote export diversification.
This development comes as Nigeria’s debt profile continues to rise, with the country’s total public debt reaching N121.67 trillion as of March 2024.
The Nigerian government has embarked on various economic reforms, including removing petrol subsidies, unifying exchange rates, and ending central bank deficit financing.
While these measures have helped stabilize the economy, growth remains sluggish, with over 130 million Nigerians living in poverty.
