The World Bank has announced plans to approve $1.65b in loans for Nigeria in 2025, targeting critical areas such as internally displaced persons (IDPs), education, and nutrition, News360 Nigeria reports.
According to details obtained from the World Bank’s website, the loans are designed to bolster Nigeria’s social and economic recovery, particularly in sectors facing severe developmental challenges.
The first project, titled “Solutions for the Internally Displaced and Host Communities Project”, is valued at $300m and is scheduled for approval on April 8, 2025. This project aims to provide support for IDPs and the host communities accommodating them.
The announcement comes amidst growing fiscal pressure on Nigeria, exacerbated by rising external debt service payments. The World Bank’s latest International Debt Report revealed that developing nations spent $1.4 trillion on foreign debt servicing in 2023—the highest on record—due to surging interest rates reaching their 20-year peak.
Interest payments alone accounted for $406b, a 30% increase from the previous year, significantly limiting spending on essential sectors like health, education, and environmental programs.
The report highlights that vulnerable economies, particularly those eligible for funding under the World Bank’s International Development Association (IDA), have been hit hardest by the debt burden.
The planned loans for Nigeria signal the World Bank’s commitment to alleviating the nation’s economic strain and addressing pressing developmental needs, particularly in vulnerable communities and key social sectors.
Further details regarding the remaining loan projects, their allocation, and approval timelines are expected in the coming months.
