WORLD BANK APPROVES $1.25BN NIGERIA LOAN DESPITE BACKLASH

The World Bank has approved a $1.25 billion loan for Nigeria despite criticism from some stakeholders over the country’s growing debt profile and continued reliance on external borrowing.

The funding is expected to support key economic reforms, strengthen public institutions, and improve service delivery in critical sectors of the economy.

According to officials, the loan is designed to promote fiscal sustainability, enhance economic resilience, and support programmes aimed at reducing poverty and improving livelihoods.

Government authorities maintain that the financing will help accelerate ongoing reforms, attract investment, and strengthen the country’s economic recovery.

However, some economists and civil society groups have expressed concern that increasing external debt could place additional pressure on Nigeria’s public finances and future debt servicing obligations.

They have called for greater transparency in the utilisation of borrowed funds and urged the government to ensure that the resources are invested in projects capable of delivering measurable economic benefits.

Financial analysts note that concessional loans from multilateral institutions often come with relatively favourable terms, but stress that prudent management remains essential to maximise their impact.

Stakeholders have also urged the government to strengthen revenue generation, improve fiscal discipline, and reduce dependence on borrowing over the long term.

The approval comes as Nigeria continues to pursue economic reforms aimed at stabilising the economy, improving infrastructure, and creating opportunities for sustainable growth.

The World Bank reaffirmed its commitment to supporting Nigeria’s development agenda through programmes that promote inclusive economic growth and institutional reforms.