The World Bank has approved three new projects totaling $1.57 billion in financing for Nigeria.
The new funding will help the country address governance challenges in education and health, improve primary health services, and combat climate change through strengthening dam safety and irrigation infrastructure, according to a statement released by the World Bank on Monday. This will help build resilience.
The approval, made on September 26, 2024, underscores the World Bank’s commitment to strengthening Nigeria’s human capital and building resilience in the face of the threats of climate change.
The funding package, which includes $1.5 billion in loans and $70 million in grants, is part of a broader effort to tackle poverty and improve productivity while improving key sectors such as education, health care and water management. .
Breakdown of approved projects The $1.57 billion in funding will be divided into three major projects. The first, HOPE-GOV, will receive $500 million to improve governance in education and health. The program is designed to address the underlying financial and human resources management issues that impede service delivery. The aim is to strengthen transparency and accountability while ensuring that critical services such as basic education and primary health care reach the most vulnerable. An additional $570 million has been allocated to the Primary Health Care Delivery Enhancement Program (HOPE-PHC). This work is critical to improving Nigeria’s health system, especially for women, children and adolescents. The program focuses on reducing maternal and under-five mortality rates and strengthening the resilience of Nigeria’s health infrastructure. Under HOPE-PHC, the project will provide quality reproductive, maternal, neonatal, children, and adolescent health services. A total of 40 million Nigerians, especially those living in underserved areas, are expected to benefit from the program. The initiative is funded by a $500 million loan from the International Development Association (IDA) and an additional $70 million grant from the Global Finance Facility (GFF), including contributions from the UK Foreign and Commonwealth Office (FCDO) and the Children’s Fund. Provided. Investment Foundation Fund (CIFF). These funds will help fill gaps in primary health care funding, while also supporting sustainable financing for family planning. The remaining $500 million will be allocated to the Nigeria Sustainable Power and Irrigation Project (SPIN), which aims to protect Nigeria from the challenges posed by climate change. such as floods and droughts. The SPIN program will benefit approximately 950,000 people, including farmers and livestock farmers, through strengthened dam safety measures, improved water resource management, and expanded irrigation services. This project will help improve Nigeria’s agricultural productivity through more reliable and efficient irrigation systems. The SPIN project also includes plans to develop a hydropower master plan with a focus on promoting energy production through public-private partnerships. New financing to address challenges faced by Nigerians
In a statement, Dr. Ndiame Diop, World Bank Country Director for Nigeria, stressed that investing in the health and education of Nigerians is critical to future job opportunities, increased productivity and poverty reduction.
He added that the new financing will address critical challenges faced by Nigerians, especially women and girls, in accessing quality health care and services.
Diop said: “Effective investment in the health and education of Nigerians today is central to increasing future employment opportunities, productivity and incomes while reducing poverty for the most vulnerable. ” he said. This new financing for human capital and primary health care will not only help address the complex challenges faced by Nigerians, especially women and girls, in terms of access and quality of services, but also account for these challenges. It also helps address governance arrangements.
“The SPIN program is timely and will protect Nigerians from floods and droughts in implementation areas, while enabling increased hydropower generation.The direct positive impact this project will have on people and livelihoods will be significant. The World Bank is pleased to work with governments and other stakeholders to make this program a reality.”
What you need to know
Nigeria has so far secured new loans totaling $6.52 billion from the World Bank under President Bola Tinubu’s administration amid concerns over rising external debt servicing costs.
Earlier this year, the World Bank recently announced the approval of two financing projects aimed at strengthening Nigeria’s economic stability and supporting vulnerable populations.
Nairametrics reported that Nigeria received only about 16% of the total loans previously approved by the World Bank under the Tinubu administration.
This means that of the previously approved $4.95 billion loan, only $774.99 million had been disbursed as of July 31, 2024, raising concerns about the pace of project implementation and utilization of funds. It is occurring.
Data from the Debt Management Office (DMO) External Debt Stock Report shows that as of March 31, 2024, Nigeria owed the World Bank a total of $15.59 billion.
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