- The federal government of Nigeria is talking with the World Bank for a new $1.5 billion loan
- The loan would be due in 2024, pending approval from the World Bank and the Federal government
- Details show that the government of President Bola Tinubu has obtained loans three times in the last three months
The Nigerian government is in talks with the World Bank for a fresh $1.5 billion loan.
Data from the World Bank website shows that the loan is titled ‘Nigeria Human Capital for Opportunities and Empowerment.’
New loans meant to strengthen primary education and girls' empowerment
The loan is intended to enhance systems for improved delivery of primary education and direct health services in participating states.
The Nigerian government said the loan would be implemented in 2024, pending World Bank approval.
Findings reveal another loan titled ‘Nigeria Macro-Fiscal Reforms for Economic Stability and Economic Transformation.’
The details and amount of this loan remain undisclosed by the World Bank and the Nigerian government.
Punch reports that there were pending talks on five other loan projects.
The loans include $300 million for solutions for internally displaced persons (IDPs) and host communities, $500 million for rural access and agricultural marketing project scale-up, $750 million for Nigeria’s distributed access via renewable energy scale-up project, and $500 million NG accelerating resource mobilization reforms.
Tinubu's government secures three loan facilities from the World Bank in three months
Nigeria has secured about $1.95 billion in loans from the World Bank in the four months of President Bola Tinubu’s government.
The first loan was the $750 million approved on June 9, 2023, to enhance Nigeria’s power sector.
The second was N500 million to help Nigeria to drive women’s empowerment. The World Bank approved the loan on June 22, 2023.
The third loan was $700 million to boost adolescent girls’ learning and empowerment, approved on September 21, 2023.
Reports say the International Bank for Reconstruction and Development and the International Development Association, comprising the World Bank, have advanced loans to Nigeria.
The World Bank agencies lend to governments of middle-income and creditworthy low-income countries. At the same time, the IDA provides concessionary loans called credits and grants to governments of the poorest countries.
Nigeria's debt profile hits N87 trillion
The IBRD lends to governments of middle-income and creditworthy low-income countries, while the IDA provides concessionary loans – called credits – and grants to governments of the poorest countries.
Further analysis shows that Nigeria obtained $14.51 billion IDA debt and $485.75 million from the International Bank for Reconstruction and Development by Q2 of this year.
According to the Debt Management Office, Nigeria’s total debt profile hit N87.38 trillion at the end of the second quarter of 2023.
The amount represents a rise of 75.29% or N37.53 trillion compared to N49.85 trillion recorded at the end of March 2023.
Meanwhile, Nigeria’s domestic debt is estimated at N54.13 trillion and external debt of N33.25 trillion.
Debt servicing consumed 106% of Nigeria's revenue in 2022 as FG plans N1.7trn new borrowing in 2023
Legit.ng reported that the federal government spent a whopping N5.65 trillion on debt servicing, representing 106% of the country's total revenue generated within the same period.
Figures from the Budget Implementation report revealed that the Federation Account Allocation Committee (FAAC) received a total revenue of N3.63 trillion and N1.67 trillion from independent revenue sources.
According to BusinessDay, the figure indicates a decline from N11.045 trillion in revenue in the 2022 approved budget.