World Bank approves $500m loan for Nigeria’s economic stimulus program
BY MOTOLANI OSENI
The World Bank has approved a $500 million loan to Nigeria to support the country’s Community Action for Resilience and Economic Stimulus Program, aimed at alleviating economic challenges through targeted support for vulnerable communities.
The approval, which occurred on March 28, 2025, will help expand access to essential services such as livelihood support, food security, and grants for struggling households and small businesses.
This initiative, officially known as the Nigeria Community Action for Resilience and Economic Stimulus Program, is designed to bolster economic resilience at the grassroots level, particularly for those most impacted by Nigeria’s ongoing economic difficulties.
The program will provide crucial grants to households and small businesses to cushion the effects of inflation and high living costs, supporting efforts to address food insecurity and enhance economic opportunities for the most affected populations.
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In addition to this $500 million loan, two more loans are expected to be approved later this week. One will focus on accelerating nutrition outcomes in Nigeria with an estimated commitment of $80 million, while the second aims to enhance access to quality basic education with a proposed $552 million allocation.
These initiatives are part of a broader strategy by the World Bank to support Nigeria’s development agenda, addressing critical areas such as healthcare, education, and community resilience. Since the beginning of President Bola Tinubu’s administration, the Federal Government has secured loans totaling $7.45 billion from the World Bank, reflecting a significant push to address the country’s developmental challenges.
However, concerns remain over the pace of project implementation, with only 16% of the previously approved loans disbursed as of July 2024, raising questions about the timely utilization of these funds. Despite these concerns, the World Bank remains a key player in Nigeria’s economic recovery, with the majority of the country’s external debt owed to the institution.
