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New data has revealed that Nigeria has only received 16% of the $4.95 billion in World Bank loans approved under President Bola Tinubu’s administration.
As of July 31, 2024, the Federal Government had disbursed just $774.99 million of the total loan amount, leaving a substantial $4.16 billion still awaiting release.
These loans, approved for projects aimed at economic stabilization, infrastructure development, and social welfare, are crucial for addressing some of the country’s most pressing challenges.
In spite of the slow disbursement, the Nigerian government has emphasized its commitment to ensuring that these funds are used effectively to address urgent needs within the community.
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It has been noted that several of these loans come with specific conditions that must be met before additional funds can be disbursed.
This approach is intended to promote accountability and ensure that the projects achieve their intended outcomes.
For instance, the first project approved under President Tinubu’s administration, the Power Sector Recovery Performance-Based Operation, has only received $1.12 million of its $750 million allocation, highlighting the gradual and controlled release of funds based on performance criteria.
Nigeria’s external debt to the World Bank stands at $15.59 billion as of March 31, 2024, according to the Debt Management Office (DMO). With a significant portion of the approved loans still pending, the government’s focus remains on meeting the required conditions to unlock further disbursements.
This cautious approach is part of a broader effort to ensure that every dollar borrowed contributes meaningfully to the country’s advancement, particularly in areas of urgent need such as infrastructure and economic stabilization.
