The federal government is in talks with the World Bank about potentially securing a $500 million loan to support basic education.
This is according to the program information document of the loan project obtained by PUNCH on Friday.
The loan is part of the World Bank’s HOPE Initiative for Quality Basic Education for All, which aims to improve learning outcomes and address the challenges of out-of-school children.
The project is expected to be formally approved by March 2025 and is a key element in efforts to reform Nigeria’s struggling education sector.
PID revealed that the total cost of the operation was $554 million. The World Bank will provide $500 million, with the remaining $54 million coming from Global Partnership for Education grants.
The document states: “The HOPE-Education project will be funded by a $500 million IDA loan and $54 million GPE grant from the World Bank. The Bank will implement a $107.59 million systems transformation grant. Selected as one of two grant agencies (along with UNICEF, which will manage the remaining $54 million). TA will be coordinated between both agencies for program design, oversight, and implementation support. It will be done.”
The project is aligned with the Universal Basic Education framework and focuses on expanding access to early childhood, primary and secondary education.
The UBE program addresses Nigeria’s critical education deficits, including the alarming statistic that 17.1 million children aged 5 to 14 are out of school.
The project will also address disparities in enrollment, where the northern region lags behind the southern region.
Under the funding structure, the Federal Ministry of Finance will lead implementation in collaboration with the Federal Ministry of Education and the Universal Basic Education Board.
World Bank loans will primarily be used to improve the quality of education through training, support community-based schools, and provide grants to improve management and infrastructure.
According to PID, the overall goal of the program is to improve children’s basic literacy and numeracy skills while integrating data systems to monitor progress.
It also aims to encourage states through performance-based grants to address local education challenges.
The funding model, known as Program-for-Results, gives states flexibility in designing and implementing projects that align with their business objectives.
The HOPE initiative is part of the Nigerian government’s broader human capital development strategy, which aims to build an educated and productive workforce by 2030.
The document states that while Nigeria is Africa’s largest economy, over 40% of the population still lives in poverty and limited access to education is a major constraint to growth. He emphasized.
Loan approval is expected in early 2025, and the fund will complement existing interventions such as the National Homemade School Meals Program, reducing the financial burden on parents and improving school enrollment.
The initiative also aims to close gender disparities and increase school attendance for children in remote and underserved communities.
The document further states that “this operation is one of three strategically positioned and interdependent operations to address a variety of challenges, but synergistically designed to address human development.” ” he added. HOPE-Governance focuses on increasing the availability and effectiveness of funding, strengthening transparency and accountability, and improving workforce recruitment, deployment, and performance management in basic education and primary health care. HOPE-Primary Health Care, on the other hand, focuses on the quantity and quality of primary health care services.
“These two projects will support this proposed project, HOPE-Basic Education, and achieve its objectives by ensuring increased financial allocations that are more equitably distributed and effectively managed. We need to: Prepare teachers, increase recruitment, improve staffing and attendance, and better engage children in school.”
On September 26, 2024, the World Bank approved $500 million for HOPE-GOV and $570 million for HOPE-PHC.
HOPE-Education is the last of these three related projects, with an expected approval date of March 20, 2025.
So far, the Federal Government under the leadership of President Bola Tinubu has secured loans worth $6.45 billion from the World Bank in just 16 months.
Projects under the Tinubu administration include power financing ($750 million), women’s empowerment ($500 million), girls’ education ($700 million), renewable energy ($750 million), and economic stabilization reforms. ($1.5 billion) and resource mobilization reforms ($750 million). ).
Meanwhile, the World Bank’s Director for Nigeria, Dr. Ndiame Diop, said the Bank stands ready to provide Nigeria with further financing and technical assistance to support ongoing reforms.
He said this while speaking to journalists after the launch of the World Bank’s latest Nigeria Development Report in Abuja on Thursday.
In response to a question on whether the World Bank would continue lending to Nigeria, Mr. Diop said: These are government projects and are primarily implemented by states. ”
He added: “Nigeria is a very important partner for the World Bank. We have provided not only technical support but also financing. But what is really important is that financing requires technical support and funding. It comes with implementation support to ensure things go as planned.”
Data from the Debt Management Bureau’s External Debt Stock Report shows that as of March 31, 2024, Nigeria owes a total of $15.59 billion to the World Bank.
As of June 30, 2024, Nigeria was the third largest debtor to the World Bank International Development Association, reflecting a significant increase in borrowings from the World Bank International Development Association.
According to the World Bank’s financial statements, Nigeria’s exposure to IDA increased by 14.4% from $14.3 billion in fiscal year 2023 to $16.5 billion in fiscal year 2024.
This $2.2 billion increase puts Nigeria in the top three IDA debtors for the first time, a notable change from its previous position as the fourth largest borrower as of 2023.
The 2024 financial year runs from July 2023 to June 2024, which means Nigeria received at least $2.2 billion from the World Bank under the administration of President Bola Tinubu.
This debt is distinct from an outstanding loan from the World Bank’s International Bank for Reconstruction and Development.
