• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Nigeria takes $1.95bn World Bank loan, ignores debt concerns

2 years ago
in Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
57
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria takes $1.95bn World Bank loan, ignores debt concerns

Nigeria secured a total of $1.95 billion in loans from the World Bank in the first four months of President Bola Tinubu’s administration amid concerns over the country’s rising debt profile.

The loans are for education ($700 million), power ($750 million), and women empowerment ($500 million), according to BusinessDay’s findings.

For many Nigerians, long years of infrastructure decay and increased unemployment have triggered an increased feeling of bitterness whenever they hear the government’s intention to borrow.

Although some of them realistically agree that resources are thin, considering an outsized population; however, they believe the past borrowings have not been justified.

“I can’t really fathom what the government uses the money it borrows to do,” said Emeka Nwani, a young Nigerian in his 30s. “If it was judiciously utilised, why does the economy groan under epileptic electricity supply, with most Nigerians struggling to access constant power supply while industries run on generators, paying hugely for alternative energy supply?”

Femi Adelana, a business analyst with Sofidam Capital, can’t fathom why a 2022 UNESCO report noted that about 20 million Nigerians were not enrolled in school despite budget allocations and loans from foreign financial institutions.

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

“There are lots of frightening tales in the minds of Nigerians whenever the government announces its intention to borrow more,” Adelana said.

Economists surveyed by BusinessDay said it is not wrong for countries to borrow, as long as the loans would be targeted at specific infrastructure that would, in turn, make life better for the people.

“Increased borrowings can only make lives better when such borrowings are channelled into things that yield economic returns,” said a senior analyst in one of Big Four consulting firms. “But that has never been the case for Nigeria.”

Data from the Debt Management Office showed the federal government had an outstanding external debt of $38.8 billion as of June 2023.

BusinessDay findings showed Nigeria has secured three major loans from the World Bank since President Tinubu assumed office on May 29, 2023, totalling $1.95 billion.

$750 million loan for power projects

On June 19, the federal government secured a $750 million loan from the World Bank to facilitate power projects across the nation.

The loan, with project ID P174622, was approved on June 9, making it the first World Bank loan approved under the administration of President Tinubu.

The global lender said the fresh loan would serve as additional financing for the power sector recovery performance-based operation, which was first approved on June 23, 2020.

The World Bank, in a document, also disclosed that out of the $750 million initially approved in 2020, only 72 percent financing of $535.09 million was disbursed, with the balance expected by June 30, for the parent project.

For the newly approved additional financing, the International Bank for Reconstruction and Development (IBRD) will provide $449 million, and the International Development Association (IDA) will provide $301 million. The IDA and the IBRD, which make up the World Bank, have over the years advanced loans to Nigeria.

The World Bank document further disclosed that the new financing would run from 2023 to June 30, 2027.

While justifying the reason for the loan, the Washington-based multilateral institution noted that Nigeria has the largest electricity access deficit in the world.

“Lack of access to the electricity grid affects 45 percent of the population (90 million people), making Nigeria the country with the largest number of people not connected to electricity. As such, Nigeria accounts for 12 percent of the global access deficit,” it said.

$500 million for women empowerment

On June 27, the World Bank Group announced the approval of a loan of $500 million to help Nigeria drive women empowerment.

This became the second loan approved by the World Bank under the President Tinubu administration.

It is a scale-up financing for Nigeria for Women Programme, which was initially approved on June 27, 2018, with $100 million financing.

“The World Bank has approved $500m for Nigeria for Women Program Scale Up. The scale-up financing will further support the government of Nigeria to invest in improving the livelihoods of women in Nigeria,” the World Bank said in a statement.

$700 million for educating adolescent girls

In September 2023, the World Bank approved a substantial loan of $700 million in a move aimed at bolstering educational opportunities and empowerment for adolescent girls in Nigeria.

The context of this loan is set against the backdrop of Nigeria’s staggering figures of 12 million to 15 million out-of-school children in the school-age group, with a substantial concentration in Northern Nigeria. The heightened insecurity around schools during 2020-2021 further exacerbated this educational crisis, affecting approximately one million children.

The allocated funds are intended to support the ongoing ‘Adolescent Girls Initiative for Learning and Empowerment’ project. The primary objective of this initiative is to improve secondary education accessibility for girls residing in specific target states within Nigeria.

“The World Bank approved additional financing of $700 million for Nigeria to scale up the Adolescent Girls Initiative for Learning and Empowerment program whose goal is to improve secondary education opportunities among girls in targeted states,” the bank said.

Tags: Debtignores debt concernsNigeriaNigeria takes $1.95bn World Bank loanUNESCOWorld Bank
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.