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President Bola Tinubu’s administration has secured a substantial line of credit from the World Bank, totaling $6.45 billion in just 16 months. This has been further enhanced by the recent approval of three additional loans amounting to $1.57 billion.
For many Nigerians, long years of infrastructure decay and increased unemployment have triggered an increased feeling of bitterness whenever they hear the government’s intention to borrow.
The World Bank’s recent approval of three new loans, totaling $1.57 billion, for diverse projects in Nigeria has significantly boosted the country’s loan portfolio. This fresh infusion of funds has propelled the total loan amount to a new high, and further increases are anticipated in the near future.
The Federal Government of Nigeria has secured a substantial financial boost from the World Bank, with the international lender approving 36 loan requests over a five-year period, totaling an impressive $24.088 billion.
Some of the projects under Tinubu include loans for power ($750 million), women empowerment ($500 million), girl’s education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion) and resource mobilization reforms ($750 million),
The government’s persistent intentions to borrow have ignited growing resentment among many Nigerians, who have witnessed years of crumbling infrastructure and unemployment.
Although some of them realistically agree that resources are thin, considering an outsized population; however, they believe the past borrowings have not been justified.
However, according to an analysis of documents obtained from the international lender website on Tuesday, the international lender has maintained an annual credit approval to the nation since 2020.
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A cursory look showed that the lender approved 15 loan requests worth $6.36bn in 2020. Some of these projects include the Nigeria Rural Access and Agricultural Marketing Project with an approved project commitment of $510m, The Nigeria Digital Identification for Development project ($430m), and $750m for the Nigeria SATAN additional financing for COVID-19 response, amongst others.
In 2021, the loan requests were reduced to six projects worth $3.2bn while the nation, under the administration of former president Mohammadu Buhari, secured loans worth $1.26bn in 2022 for six projects.
For instance, a $500m loan request was approved for a livestock productivity and resilience support project on March 18, 2022. Another loan of $750m was approved under the Nigeria: State Action on Business Enabling Reforms Program in the same year.
Also, $3.9m was secured for the Umbrella organisation to support Nigeria for women’s projects.
However, in 2023, the loan request increased to $2.7bn to implement four projects, namely $750m for Nigeria- AF power sector recovery performance-based operation, $500m for Nigeria for Women Program Scale-up projects and $750m for the Nigeria Distributed Access through Renewable Energy scale-up project.
Similarly, the bank has approved $3.82bn already in 2024 for five projects, which include a grant of $70 million.
This means that the loan amount was $3.75bn so far in 2024, with more credit facilities expected before the end of the current year
