The World Bank says it has approved a massive $1.57 billion loan to support Nigeria’s development projects.
The Washington-based bank which disclosed this in a statement on Monday said this significant funding will be split into three key areas.
The three key areas are; addressing governance challenges in education and healthcare, improving primary healthcare services, and enhancing resilience to climate change through better dam safety and irrigation infrastructure.
The World Bank said the loan, which was approved on September 26, 2024, consists of a $1.5 billion loan and a $70 million grant.
This financing package is part of the World Bank’s broader efforts to strengthen Nigeria’s human capital, build resilience against climate threats, and tackle poverty and productivity.
However, this new loan has sparked concerns among financial experts, who point out that Nigeria’s debt burden has already reached N121.67 trillion as of March 2024.
The country’s rising debt, combined with a widening infrastructural deficit, has experts worried about the long-term sustainability of Nigeria’s economy.
Cyber Reporters gathered that this is not the first significant loan from the World Bank to Nigeria.
In June last year, the bank approved a $2.25 billion loan facility to support President Bola Tinubu’s economic policies.
While these loans aim to boost Nigeria’s development, experts urge the government to manage its debt responsibly to ensure long-term sustainability.
