Tinubu’s Govt borrowed $6.45 billion from the World Bank in 16 Months – Report

Under President Bola Tinubu, the Federal Government has obtained $6.45 billion in loans from the World Bank within just 16 months. This figure includes a recent approval of three loans totaling $1.57 billion for various projects across Nigeria, with expectations for further increases in the coming months.

In total, the World Bank has approved 36 loan requests to the Federal Government, amounting to $24.088 billion over the past five years. These funds are intended to finance development initiatives nationwide, amidst growing concerns about Nigeria’s escalating debt and its long-term sustainability.

Key projects supported by these loans include funding for power ($750 million), women’s empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), and resource mobilization reforms ($750 million).

Many Nigerians, frustrated by years of infrastructure decay and rising unemployment, express skepticism about the government’s borrowing strategies. While some acknowledge the challenges posed by a large population and limited resources, they question the effectiveness of past loans.

Since 2020, the World Bank has consistently approved loans for Nigeria, with 15 projects amounting to $6.36 billion in 2020 alone. These include funding for rural access and agricultural marketing ($510 million), digital identification projects ($430 million), and COVID-19 response efforts ($750 million).

In subsequent years, loan approvals fluctuated, with six projects worth $3.2 billion in 2021 and $1.26 billion for six projects in 2022. Notably, a $500 million loan for livestock productivity was approved in March 2022, along with another $750 million for business enabling reforms.

In 2023, loan requests increased to $2.7 billion for four projects, including $750 million for the power sector and $500 million for women’s programs. For 2024, the World Bank has already approved $3.82 billion for five projects, with expectations of further credit facilities.

Recent World Bank approvals focus on critical sectors like economic reform, resource mobilization, and renewable energy. A notable package approved on June 13 included $2.25 billion aimed at enhancing Nigeria’s economic stability and supporting vulnerable populations.

The World Bank emphasized that these loans would strengthen human capital through improved health services for women, children, and adolescents while also addressing climate resilience through better dam safety and irrigation.

As of March 31, 2024, Nigeria’s debt to the World Bank totals $15.59 billion. Debt servicing costs have surged, reaching ₦6.04 trillion in the first half of 2024—a 68.8% increase from the previous year—largely due to the naira’s devaluation impacting foreign debt repayments. This rise underscores the growing financial pressure on the government as a significant portion of its budget is consumed by debt obligations.