President Bola Tinubu’s led administration Secures loans worth $6.45bn from World Bank in just 16 Months
The President Bola Tinubu’s led administration has secured loans worth $6.45bn from the World Bank in just 16 months.
The amount skyrocketed following the recent approval of three new loans totalling $1.57bn from the World Bank for various projects in Nigeria and is expected to increase further in the coming months.
The international lender had approved no fewer than 36 loan requests to the Federal Government, totaling to a substantial amount of $24.088bn within five years.
These approvals, aimed at financing various development projects nationwide, arrive alongside increasing concerns about the country’s escalating debt profile, prompting questions about the sustainability of these financial commitments and their potential long-term effects on the economy.
Some of the projects under Tinubu include loans for power ($750 million), women empowerment ($500 million), girl’s education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion) and resource mobilization reforms ($750 million),
The government’s desire to borrow money has caused a great deal of resentment among many Nigerians, who have endured years of declining infrastructure and rising unemployment.
It was held that the previous borrowings were unjustified, even if some of them acknowledge that resources are limited given the disproportionate population.
Yet, since 2020, the foreign lender has continued to provide the country a yearly credit approval, according to a review of records that were taken from the website of the foreign lender on Tuesday.
A cursory look showed that the lender approved 15 loan requests worth $6.36bn in 2020. Some of these projects include the Nigeria Rural Access and Agricultural Marketing Project with an approved project commitment of $510m, The Nigeria Digital Identification for Development project ($430m), and $750m for the Nigeria SATAN additional financing for COVID-19 response, amongst others.
In 2021, the loan requests were reduced to six projects worth $3.2bn while the nation, under the administration of former president Mohammadu Buhari, secured loans worth $1.26bn in 2022 for six projects.
However, in 2023, the loan request increased to $2.7bn to implement four projects, namely $750m for Nigeria- AF power sector recovery performance-based operation, $500m for Nigeria for Women Program Scale-up projects and $750m for the Nigeria Distributed Access through Renewable Energy scale-up project.
Similarly, the bank has approved $3.82bn already in 2024 for five projects, which include a grant of $70 million.
This means that the loan amount was $3.75bn so far in 2024, with more credit facilities expected before the end of the current year
The World Bank has approved a series of loans to Nigeria, strategically targeting critical sectors such as economic reforms, resource mobilization, adolescent girls’ education, and renewable energy expansion.
Recall that on June 13, the World Bank announced the approval of two loan projects aimed at bolstering Nigeria’s economic stability and support.
