In a move to bolster human capital development in Nigeria, the World Bank may green light a $500 million loan in May 2024.
This financial injection, aptly dubbed the Nigeria Human Capital for Opportunities and Empowerment (HOPE), represents a pivotal investment in the nation’s future, according to information obtained from the Washington-based financial institution.
Earmarked initially at a more ambitious sum of $1.5 billion, the loan amount was recalibrated to $500 million.
A reliable source within the bank noted that the final loan sum is subject to the World Bank board’s final approval, underscoring the fluid nature of financial negotiations.
The Proposed Development Objective of the project is “To support the Government of Nigeria in improving human capital service delivery through strengthening allocation and utilisation of financial and human resources in basic education and primary health care.”
The loan is meant to be implemented in 2024 pending approval by the board of the World Bank Group, with a likely approval date of May 23, 2024.
What you should know
A World Bank Project goes through six cycles, which include Identification, Preparation, Appraisal, Negotiation/approval, Implementation, and Completion/validation and evaluation.
It was learnt that the estimated appraisal date for the $500 million loan is April 16, 2024, while the estimated board date is May 23, 2024.
According to a Concept Environmental and Social Review of the project, the implementing Agencies include Basic Healthcare Provision Fund (BHCPF), Federal Ministry of Education, Federal Ministry of Health, Universal Basic Education Commission.
The project operation will be open to all the 36 states in Nigeria and the Federal Capital Territory (FCT). The project will focus on achieving results in Basic and Junior Education and improving Universal Health coverages, especially for women.
More Insights
Nigeria secured total loans of $2.7 billion from the World Bank under the administration of President Bola Tinubu amid concerns over the country’s rising external debt servicing costs.
The four approved loans are for power ($750 million), women empowerment ($500 million), girl’s education ($700 million), and renewable energy ($750 million).
The World Bank recently disclosed that Nigeria was the top recipient of its fresh loans in 2022, with about $2.9 billion released to the country. According to its International Debt Report for 2023, Nigeria was followed by Tanzania, which got $2.7 billion in the same year.
Data from the external debt stock report of the Debt Management Office (DMO) shows that Nigeria owes the World Bank a total of $14.58 billion as of September 30, 2023.
This figure reflects the ongoing reliance on external funding to fuel national development projects and the consequent rise in debt service obligations, a matter that continues to spark intense discussion among economic observers and policymakers alike.
