Nigeria secures $6.45bn from the World Bank under President Tinubu in just 16 months, raising concerns over debt.
[dropcap]T[/dropcap]he Federal Government of Nigeria, under President Bola Tinubu, has secured $6.45bn in loans from the World Bank in just 16 months.
This amount is expected to rise with further approvals, despite growing concerns over the country’s debt profile.
Also read: World Bank approves $1.57bn in loans for Nigeria’s health and climate resilience
The Federal Government of Nigeria, led by President Bola Tinubu, has successfully secured $6.45bn in loans from the World Bank within just 16 months.
The amount increased following the approval of three additional loans, totalling $1.57bn, for projects across the country. These loans aim to support various sectors, including power, education, and women’s empowerment.
Since 2020, the World Bank has approved 36 loans totalling $24.088bn to Nigeria, funding initiatives such as economic reforms, renewable energy expansion, and adolescent girls’ education.
The loans are part of the international lender’s strategy to bolster Nigeria’s economy and improve human capital development.
While these loans aim to address critical development needs, there are concerns about the country’s growing debt profile.
Many Nigerians question the long-term sustainability of these financial commitments, especially as the nation’s debt servicing costs have surged significantly.
In the first half of 2024 alone, debt servicing expenses increased by 68.8 per cent compared to 2023.
Despite these concerns, President Tinubu’s administration continues to secure funding to address pressing infrastructural needs and economic stabilisation reforms.
The loans are essential to tackling long-standing challenges such as unemployment and decaying infrastructure, although there remains scepticism about the government’s borrowing policies.
As the government plans further borrowing, the focus will be on how effectively the funds are managed and whether they will deliver the promised development outcomes.
