The World Bank has explained why about six loans worth $2bn, signed for Nigeria in 2024, are yet to be disbursed nearly a year after the bank’s approval.
This comes amid recent reports that the World Bank has approved a total of $8.40bn (N12.89tn) in fresh loans to the country over the past two years, based on data from the bank’s official website.
Saturday PUNCH gathered that the approvals, covering June 2023 to August 2025, spanned 15 projects in energy, education, healthcare, rural infrastructure, and governance.
The amount, converted at the official exchange rate of N1,535.93/$ as of August 11, 2025, comprises $1.95bn (N2.99tn) from the International Bank for Reconstruction and Development and $6.50bn (N9.98tn) from the International Development Association.
The IBRD provides loans on commercial or near-commercial terms to middle-income and creditworthy low-income countries, while the IDA offers highly concessional loans and grants to the world’s poorest nations.
A review of data on the World Bank Group loan portal revealed that about nine different loans totaling $4.25bn (N6.5tn) were signed for the country in 2024.
However, six of those loans—worth $2bn (N3tn)—signed between September and December last year, had yet to be disbursed.
Responding to an enquiry by Saturday PUNCH, the Senior External Affairs Officer at the World Bank, Mansir Nasir, noted that funds for projects financed by the institution were not disbursed at once but in installments, depending on the nature of the project and financing instruments.
“Projects financed by the World Bank run for a certain time, which varies depending on the specific project. The total amount of the project is not disbursed as a one-off, but rather in installments depending on the financing instruments—e.g., IPF or PforR—which require certain milestones for specific disbursement values.
“If you look at the portal, you will see the specific disbursement timelines and values,” Nasir added.
He further stated that before a new project can begin disbursement, it must meet certain agreed conditions between the Federal Government and the World Bank.
Findings by Saturday PUNCH revealed that three loans were signed for Nigeria on September 26, 2024.
The first, worth $500m, is for the Sustainable Power and Irrigation Project, which is expected to be implemented by the Federal Ministry of Water Resources and Sanitation.
The project contract, with a total cost of $700m, is expected to end on December 31, 2029.
According to the bank, the project will address the nexus of water-food-energy challenges in the country through investments in irrigation, dam safety, and hydropower planning.
The second loan, also approved on the same day, is worth $500m for the Nigeria Human Capital Opportunities for Prosperity and Equity – Governance Project.
The bank said the project is one of a series of three interconnected and complementary programmes, all geared towards achieving the same set of ultimate outcomes.
It noted that the HOPE-Governance project focuses on critical cross-cutting challenges and enabling factors related to both financial and human resource management in Nigeria.
According to the bank, the other two (HOPE-Primary Healthcare and HOPE-Basic Education) will focus on the quantity and quality of services delivered at the facility level.
The third loan for the month was another $500m for the Primary Healthcare Provision Strengthening Programme Project.
It is another aspect of the bank’s HOPE Programme and aims to boost human capital development in Nigeria.
However, the project contract is expected to close on June 30, 2029, unlike the others.
Similarly, in December 2024, the global bank signed three additional loans for Nigeria worth $357m, $86m, and $57m, all approved for the Rural Access and Agricultural Marketing Project.
The project, to be implemented by the Federal Ministry of Agriculture and Food Security, is expected to close on December 31, 2030.
