The World Bank has approved a $1.5 billion loan for Nigeria to assist in the removal of fuel subsidies and the implementation of essential tax reforms.
Under the World Bank’s Reforms for Economic Stabilization to Enable Transformation Development Policy Financing project, this is the fastest payment Nigeria has ever received.
The loan, approved on June 13, 2024, and disbursed in two tranches, aims to address key social issues, including the challenges internally displaced persons (IDPs) face in education, nutrition, and health.
The second tranche, received in November 2024, was contingent on Nigeria meeting specific reform conditions set by the World Bank.
One of the major projects funded by this loan is the “Solutions for the Internally Displaced and Host Communities Project,” which is set to receive $300 million.
This project, scheduled for approval in April 2025, aims to improve educational access and address nutrition challenges among IDPs.
The “HOPE for Quality Basic Education for All” project seeks $553.8 million and targets improving education in underserved communities. Expected to be approved by March 2025, it promises to enhance educational opportunities for the most vulnerable populations.
The largest project, the “Accelerating Nutrition Results in Nigeria 2.0” initiative, has a proposed funding of $800 million.
This project, which aims to tackle malnutrition, is expected to receive approval on February 20, 2025.
“The loan will provide much-needed support to IDPs and improve access to education and healthcare.
“This financing will strengthen Nigeria’s nutritional outcomes, especially for vulnerable populations,” a government statement read.
