President Tinubu’s Government has Borrowed a Staggering $6.45bn From The World Bank

The current administration led by President Bola Tinubu has borrowed a total of $6.45bn from the world bank in just 16 months in office. The figure surged to its current number following the recent loan taken from the world bank that was a total of $1.57bn. This is expected to increase as time goes on.

The most recent load include the projects $750 million for the power sector, $500 million for women’s empowerment, and $700 million for enhancing girls’ education, $750 million renewable energy, economic stabilization reforms $1.5 billion and resource mobilization reforms $750 million

According to Punch, the borrowing strategy from this administration is driven by long-standing issues such as deteriorating infrastructure and soaring unemployment rates, leading to growing public discontent.

Citizens has expressed the displeasure of the borrowing from the government as things continue to worsen. A concerned citizen lamented “While we understand that resources are thin in a country with a burgeoning population, the previous borrowings have not brought tangible improvements.”

The world bank’s data reveals a borrowing habit of Nigerian approved loan dating back to 2020. In 2020, the past administration borrowed loans worth $6.36bn for various projects, including the Nigeria Rural Access and Agricultural Marketing Project and the Nigeria Digital Identification for Development project.

The pattern on loan collecting has significantly evolved as of 2021, Nigeria secured six loans worth $3.2 billion, while the following year, the government obtained $1.26 billion for six additional projects.

As of 2024, the world bank has approved loans totalling $3.82bn. In a statement from the world bank it read “The World Bank has today approved three operations for a total of $1.57 billion to support the Government of Nigeria in strengthening human capital through better health for women, children, and adolescents while also building resilience against climate change impacts like floods and droughts.”
The latest approved loans equally includes $570 million dedicated to strengthening primary healthcare and $500 million for addressing governance issues that hinder effective education and health service delivery.

“The HOPE-GOV and HOPE-PHC programmes combined will support the Government of Nigeria to improve service delivery in the basic education and primary healthcare sectors which are critical towards improving Nigeria’s human capital outcomes.

“The SPIN project will support the improvement of dams’ safety and management of water resources for hydropower and irrigation in selected areas of Nigeria.

“The HOPE-GOV Programme will support Nigeria to address underlying governance weaknesses in the systems and procedures of government in two key human development sectors,” it noted.

The approval made on September 26, 2024 showed the world bank’s commitment strengthening Nigeria’s human capital and building resilience in the face of climate threats.

Data from the Debt Management Office shows that Nigeria owed the World Bank $15.59 billion as of March 31, 2024. In the first half of 2024, Nigeria’s debt servicing expenses surged to N6.04tn, a 68.8% increase from the N3.58tn recorded during the same period in 2023, according to the Central Bank of Nigeria.

This sharp rise, likely driven by naira devaluation for foreign debt repayments, highlights the growing financial burden on the government as debt repayment consumes a larger portion of its resources.