Nigeria to get another $500 million loan from World Bank
The Nigerian Government is vying for a $500 million loan from the World Bank to improve basic education.
Since the inception of President Bola Ahmed Tinubu’s tenure, Nigeria has received $6.45 billion in loans from the World Bank. These loans have been for various projects: $750 million for the power sector, $500 million for women’s empowerment, $700 million for girls’ education, and $750 million for renewable energy.
This new $500 million loan is part of the World Bank’s HOPE for Quality Basic Education for All initiative. The project is set for approval by March 2025. Its major aim is to provide quality and accessible basic education for children in Nigeria.
The Programme Information Document
According to the Programme Information Document (PID): “The HOPE-Education operation will be financed by a World Bank IDA credit of US$500 million and a GPE grant of US$54 million. The Bank has been selected as one of two Grant Agents (along with UNICEF that will manage the other US$54 million) for the implementation of the System Transformation Grant (STG) of $107.59 million; program design, oversight and TA for implementation support will be aligned across both Agents.”
The project execution is expected to cost $554 million in total. $500 million from the World Bank and $54 million from a Global Partnership for Education (GPE) grant.
Purpose of the project
HOPE-Education is aimed at achieving the following:
- Reducing the number of out-of-school children.
- Bridging the educational gap between the Northern and Southern parts of the country.
- Improving the quality of teaching through teacher training.
- Giving grants to community-based schools.
- Developing infrastructure and creating enabling learning environments.
Lastly, this loan is a part of Nigeria’s plan to build a productive workforce by 2030. Per the Nigeria’s Human Capital Development Strategy.
This project will be supervised by the Federal Ministry of Finance, the Federal Ministry of Education, and the Universal Basic Education Commission (UBEC).
HOPE-Education, an interdependent project
The PID states that the HOPE-Education project comprises two other parts.
PART ONE: HOPE-Governance (HOPE-GOV) is targeted at improving how finances for education are managed and distributed. As well as ensuring productivity and fostering transparency.
PART TWO: HOPE-Primary Health Care (HOPE-PHC) centres on boosting the quality and accessibility of healthcare services.
PART THREE: HOPE-Education; the World Bank has approved $500 million and $570 million for the HOPE-GOV and HOPE-PHC respectively. The approval of $500 million for HOPE-Education is due on March 20th, 2025.
The World Bank is committed to helping Nigeria
At the Nigeria Development Update report launch on Thursday in Abuja, the World Bank’s Country Director for Nigeria, Dr Ndiame Diop, reiterated the organization’s dedication to supporting Nigeria’s reforms.
Although Nigeria is currently the third-largest borrower from the World Bank’s International Development (IDA), Diop stated that the World Bank is ready to give Nigeria more loans and necessary assistance.
As of June 30th 2024, Data from the Debt Management Office (DMO) states that Nigeria owes the World Bank $15.59 billion.
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