The Federal Government of Nigeria is in discussions with the World Bank for a fresh $1.5 billion loan titled ‘Nigeria Human Capital for Opportunities and Empowerment’ (HOPE). The loan aims to strengthen systems for improved delivery of basic education and primary health services in participating states. Additionally, there are discussions on other loan projects, including those for internally displaced persons, rural access, agricultural marketing, renewable energy, sustainable power, and resource mobilization reforms.
This new loan follows Nigeria securing a total of $1.95 billion in loans from the World Bank in the first four months of President Bola Tinubu’s administration. While the government has expressed commitment to breaking the cycle of overreliance on borrowing, it plans to stick to the borrowing target approved in the 2023 budget. However, concerns have been raised about the country’s rising debt levels, prompting calls for thorough reviews of loan utilization and increased transparency.
Economic experts caution against new borrowings and emphasize the need for discipline in deploying borrowed funds. Some recommend cost-cutting measures and transparency in fund utilization to stimulate production and boost foreign exchange. Others suggest moratoriums, debt buybacks, and internal revenue growth to alleviate debt burdens. The IMF and World Bank are urged to exercise caution in lending money to Nigeria until 2025, allowing the country to focus on internal revenue growth.
