The World Bank Group has approved $2.2 billion loan for Nigeria, months after President Muhammadu Buhari applied for a $3 billion loan from the institution in 2019.
With the approval, the country’s debt is about to rise to $87.6 billion (N27 trillion).
Announcing the approval late Tuesday, World Bank President, David Malpass, said: “Nigeria is central to World Bank Group’s mission of tackling extreme poverty.
“The world bank is carefully targeting its support on high impact projects as the country works to tackle corruption and lift 100 million of its people out of poverty,”
The WBG following the approval directed the federal government to invest the fund in six projects to enable a strong business environment for private sector participation, improve the country’s immunization, expand the digital economy to promote the creation of jobs and increase public/private sector capacity, among others
According to the WBG, the $2.2 billion for the projects will be raised through the International Development Association (IDA), the French Development Agency, the European Investment Bank and the FG.
The new loan has pushed the country’s domestic and foreign debt to $87.6 billion.
The domestic debt is put at $58.4 billion, while the external debt is placed at $26.9 billion.
How World Bank Will Fund The Projects
- The Immunization Plus and Malaria Progress by Accelerating Coverage and Transforming Service, will be funded by the international Development Association (IDA) with $650 million.
- The Nigeria Rural Access and Agricultural Marketing Project will be co-financed by the IDA and the French Agency (FDA)with $280 million and $230 million, while the FG will contribute a counter part fund of $65 million.
- Nigeria Digital Identification for Development Project will be co-financed by IDA, FDA and the European Investment Bank, with $115 million, $100 million and 215 million respectively.
- Ogun State Economic Transformation Project, will be financed by the IDA with a $250 million credit.
- Innovation Development and Effectiveness in the Acquisition of Skills Project, will be financed by the IDA with $200 million.
- The IDA will also provide $80 million credit to finance the Sustainable Procurement, Environmental and Social Standards Enhancement Project.