World Bank Approves $500M Loan to Boost Nigeria’s Economy
The World Bank has granted a $500 million loan to Nigeria to bolster the country’s Community Action for Resilience and Economic Stimulus Program (CARESP), a significant move aimed at easing economic pressure on the nation's most vulnerable populations. The loan, approved on March 28, 2025, is designed to provide direct financial support to households and small businesses grappling with economic instability, food insecurity, and rising living costs.
Supporting the Most Affected Communities
According to details published on the World Bank’s website, the CARESP initiative is tailored to strengthen grassroots resilience by distributing grants and essential services to the poor and economically marginalized. It seeks to cushion the effects of inflation and economic shocks through targeted livelihood interventions, food security programs, and community-based development projects.
By prioritizing the needs of underserved communities, the initiative aims to help households recover from the country’s ongoing economic challenges and lay the groundwork for inclusive, sustainable recovery.
Broader Economic Support on the Horizon
In addition to the $500 million loan, two more development financing projects are expected to receive approval in the coming days:
Nutrition Enhancement Program: A proposed $80 million loan aims to accelerate progress in combating malnutrition, especially among children and vulnerable groups.
Education Quality Improvement Project: With a potential funding size of $552 million, this project seeks to improve access to and quality of basic education across Nigeria.
Both loans are in the final negotiation phase and are expected to be approved on March 31, 2025.
These new initiatives form part of a comprehensive support strategy by the World Bank to assist Nigeria in tackling structural challenges across critical sectors, including healthcare, education, and economic resilience.
Tracking Nigeria’s Loan Portfolio with the World Bank
Under President Bola Tinubu’s administration, the Federal Government has secured approximately $7.45 billion in loan commitments from the World Bank. This figure spans around 11 different projects since the start of his tenure, highlighting the government’s increasing reliance on multilateral funding to drive development reforms.
However, disbursement has lagged behind commitments. As of July 31, 2024, only $774.99 million—about 16% of the earlier approved $4.95 billion—had been released, raising concerns over project execution and the efficient use of external funds.
Understanding Nigeria’s Debt Profile
Latest figures from the Debt Management Office (DMO) show that Nigeria owes the World Bank $17.32 billion, the bulk of which—$16.84 billion—is from the International Development Association (IDA). This represents about 39.14% of the country’s total external debt. The remainder, $485.08 million (1.13%), is owed to the International Bank for Reconstruction and Development (IBRD), another World Bank lending arm.
Final Thoughts
While the newly approved loans underscore international confidence in Nigeria’s development goals, they also highlight the urgent need for better implementation and accountability. For these funds to make meaningful impact, especially at the grassroots level, efficient project delivery, transparent governance, and community engagement must remain top priorities.