The World Bank has approved a $1.57 billion financing package for Nigeria as part of a new program aimed at boosting the country’s health and education sectors, as well as supporting resilience to climate change, and sustainable power initiatives, the bank announced on Monday.
With over $15 billion in loans as of the end of March, the World Bank remains Nigeria’s largest lender, according to data from the Debt Management Office. Earlier this year, the World Bank approved two major loan projects aimed at strengthening Nigeria’s economic stability and providing crucial support to its vulnerable populations, post-fuel subsidy removal.
In a statement, the bank noted that the new funds would enhance both the availability and efficiency of financing for basic education and primary healthcare services.
“The new financing includes $500 million for addressing governance issues that constrain the delivery of education and health, $570 million for the Primary Healthcare Provision Strengthening Program and $500 million for the Sustainable Power and Irrigation for Nigeria Project,” the bank said.
Nigeria is one of the countries with the highest number of out-of-school children, largely due to insecurity, particularly in the northern region.
This area has been severely impacted by a prolonged Islamist insurgency and armed kidnapping gangs, which have disrupted education and caused widespread instability.
The World Bank also stated that part of the $1.57 billion financing will be allocated to improving dam safety, aiming to protect communities from the devastating effects of floods.
“The SPIN program is timely and will protect Nigerians from floods and droughts in the areas where it will be implemented while enabling an increase in hydropower generation. The direct positive impact of this project on people and livelihoods is enormous, The World Bank is pleased to work with the government and other stakeholders to deliver this program,” Dr Ndiamé Diop, World Bank Country Director for Nigeria said.
Nigeria frequently experiences flooding, and this year alone, up to a million people were affected after a dam in Borno State, in the northeast, burst. The situation could worsen as authorities in Cameroon have begun releasing water from a large dam to prevent overflow, raising concerns about further flooding in Nigeria.
