The Federal Government is seeking a $500 million World Bank loan to improve basic education, aiming to boost learning and cut out-of-school numbers.
This is according to the Programme Information Document for the loan project.
Naira Metrics reports that the loan is part of the World Bank’s HOPE for Quality Basic Education for All initiative, which aims to improve learning outcomes and address the challenges of out-of-school children.
Set for formal approval by March 2025, this project plays a key role in Nigeria’s education reform efforts.
The PID disclosed the total cost at $554m, with $500m funded by the World Bank and $54m from the Global Partnership for Education grant.
“The HOPE-Education operation will be financed by a World Bank IDA credit of $500m and a GPE grant of $54m.
The bank has been selected as one of two grant agents (along with UNICEF that will manage the other $54m) for implementing the System Transformation Grant of $107.59m; programme design, oversight, and TA for implementation support will be aligned across both agents,” the document read.
Data from the external debt stock report of the Debt Management Office showed that Nigeria owed the World Bank a total of $15.59bn as of March 31, 2024.
Nigeria emerged the third-largest debtor to the World Bank’s International Development Association as of June 30, 2024, reflecting a significant increase in the country’s borrowing from the institution.
According to the World Bank’s financial statements, Nigeria’s exposure to the IDA rose by 14.4 per cent from $14.3bn in the fiscal year of 2023 to $16.5bn in FY2024.
This $2.2bn increase places Nigeria among the top three IDA debtors for the first time, a notable shift from its previous position as the fourth-largest borrower in 2023.
The fiscal year for 2024 runs from July 2023 to June 2024, which means that Nigeria has received at least $2.2bn from the World Bank under the administration of President Bola Tinubu.
This debt is different from any outstanding loan from the World Bank’s International Bank for Reconstruction and Development.