World Bank Approves $40 Million Loan to Boost Financial Protection for Poor Nigerians

• The World Bank has approved a $40 million allotment under the Health Programme-for-Results to improve financial protection for vulnerable Nigerians
• This funding is tied to the program's Disbursement Linked Indicator 3 (DLI 3), which is performance-based and dependent on state compliance with specific criteria
• The program, which aims to enhance Nigeria’s healthcare system, will focus on maternal and child health, digital infrastructure, equity in service delivery, and institutional reforms

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Under a new loan-backed health initiative that has been approved for the nation, the World Bank has set aside $40 million to promote the extension of financial protection for vulnerable and poor Nigerians.

According to information obtained by Sunday PUNCH, the loan project, which was authorised by the World Bank on September 26, 2024, consists of a $70.01 million grant from the Global Financing Facility and a $500 million credit facility from the International Development Association.

Officially known as the Health Programme-for-Results (HOPE-Health-PforR)—Human Capital Opportunities for Prosperity and Equality—the initiative is anticipated to continue until June 30, 2029.

The $40 million allotment is linked to the program's Disbursement Linked Indicator 3 (DLI 3), which aims to improve the financial security of low-income Nigerians through health insurance and other programs, per a World Bank document examined by Sunday PUNCH.

A performance-based methodology is used to structure the indicator, which is called "Financial protection for poor and vulnerable populations increased (number)." This implies that the $40 million will only be paid to the federal government, which will subsequently release the funds to states that meet and validate certain criteria.

The allocation falls under the HOPE-Health program's Result Area 2, which focuses on increasing the utilisation of vital services. This outcome area has received a total commitment of $272.5 million, which includes $33.5 million in grants and $239 million in IDA funding.

According to the World Bank, the DLI is time-bound and scalable, meaning that payments are dependent on the level of implementation and timetables. The HOPE-Health program's overarching goal is to increase resilience throughout Nigeria's healthcare system while enhancing access to and utilisation of high-quality, critical healthcare services.

The program's objectives include improving maternal and child health, expanding digital infrastructure, implementing institutional reforms at the federal and state levels, and promoting equity in service delivery.

The initiative combines a Program-for-Results approach with a technical assistance component funded through Investment Project Financing. The technical assistance portion will support capacity-building for key institutions such as the National Primary Health Care Development Agency and the National Health Insurance Authority.

In addition to expanding financial protection, the program also supports the deployment of public health fellows to all 774 Local Government Areas, the implementation of digital health platforms, and the scale-up of maternal health innovations, especially in underserved and climate-vulnerable states.

The project's Sector-Wide Approach, which promotes the alignment of national stakeholders and development partners under a single implementation framework, was also mentioned in the document.

The $40 million allotment is viewed as a crucial step to lessen the financial burden on the impoverished, as out-of-pocket expenses still make up the majority of healthcare financing in Nigeria.

World Bank slashes Nigeria’s loan requests

Legit.ng reported that the Nigerian government may lose $4 million from a World Bank loan after failing to meet auditing standards on essential revenue reforms covering the Federal Inland Revenue Service and the Nigeria Customs Service.

The loan is part of the $103 million Fiscal Governance and Institutions Project, a public financial management initiative funded via a credit facility from the bank’s International Development Association (IDA).

The World Bank’s restructuring paper, dated June 2025, disclosed that the revenue assurance audit, which covers the Federal Inland Revenue Service (FIRS) and Customs, was adjudged as not achieved because the reports failed international auditing standards.

Source: Legit.ng