World Bank grants Nigeria $500m loan to boost economic resilience
To tackle pressing economic challenges, Nigeria has secured a $500 million loan from the World Bank to support its Community Action for Resilience and Economic Stimulus Program. The approval, confirmed on March 28, 2025, is expected to provide critical relief to vulnerable households and small businesses grappling with inflation, food insecurity, and economic instability.
The initiative, which focuses on grassroots-level interventions, aims to strengthen community resilience by delivering targeted grants and livelihood support to low-income families and firms. It also seeks to improve food security and create economic opportunities for populations most affected by recent economic disruptions.
According to the World Bank, the program represents a significant step toward addressing systemic vulnerabilities in Nigeria’s economy. By channeling resources directly to underserved communities, the project hopes to alleviate the burden of rising living costs while fostering sustainable growth.
The 500 million loan is not the only financial commitment Nigeria anticipates this week. Two additional funding packages are in the pipeline, awaiting final approval. One of the loans, valued at 80 million, will focus on accelerating nutrition outcomes across the country.
The second, worth approximately $552 million, is designed to enhance access to quality basic education nationwide. Both projects are scheduled for final clearance on March 31, 2025.
These loans are part of the World Bank’s broader strategy to support Nigeria’s development priorities, particularly in areas such as healthcare, education, and poverty alleviation. The institution has emphasized the importance of implementing these programs efficiently to ensure maximum impact.
While the loans aim to address urgent socio-economic needs, Nigeria’s rising debt profile has raised concerns among stakeholders. Under President Bola Tinubu’s leadership, the country has received approvals for 11 World Bank projects totaling 7.45 billion in less than two years. However, data from the Debt Management Office (DMO) reveal that only 774.99 million (about 16% of the approved amount) had been disbursed as of July 31, 2024.
This slow pace of disbursement has sparked debates about the efficiency of project execution and fund utilization. Currently, Nigeria owes the World Bank 17.32 billion, with 16.84 billion owed to the International Development Association (IDA), representing 39.14% of the nation’s total external debt. Another $485.08 million is owed to the International Bank for Reconstruction and Development (IBRD), accounting for 1.13% of external obligations.
Experts warn that without improved transparency and accountability in managing these funds, the intended benefits may not materialize. They urge the government to prioritize timely implementation and ensure that borrowed resources translate into tangible improvements for Nigerians.
As the country navigates its economic recovery efforts, the success of these initiatives will depend heavily on effective planning, coordination, and execution. For now, all eyes remain on how these new loans will be utilized to deliver lasting change.
