The clarification comes as Nigeria has secured $8.4 billion (N12.89 trillion) in new loans from the World Bank over the past two years, covering 15 development projects across sectors such as energy, education, health, rural infrastructure, and governance. The figure, sourced from the World Bank’s public loan database, includes $1.95 billion from the International Bank for Reconstruction and Development (IBRD) and $6.5 billion from the International Development Association (IDA).
At the official exchange rate of N1,535.93/$ (as of August 11, 2025), the cumulative value underscores Nigeria’s continued reliance on multilateral funding to bridge development gaps.
Delayed Disbursements: A Structural Issue
Responding to inquiries, Mansir Nasir, Senior External Affairs Officer at the World Bank, said that delayed disbursement is not unusual. He explained that the World Bank disburses funds in tranches based on project type, execution milestones, and agreed conditions.
“The total amount of the project is not disbursed as a one-off, but rather in installments depending on the financing instruments—e.g., Investment Project Financing (IPF) or Program-for-Results (PforR)—which require certain milestones for specific disbursement values,” Nasir told Saturday PUNCH.
He further clarified that disbursement can only commence after pre-agreed conditions between the Nigerian government and the bank are met. These typically include administrative readiness, counterpart commitments, and institutional frameworks necessary for project take-off.
Breakdown of the Undisbursed Loans
Data reviewed from the World Bank’s loan portal shows that nine loans totaling $4.25 billion were signed for Nigeria in 2024, but six of these—amounting to $2 billion—remain undisbursed. These loans were signed between September and December 2024, and most are part of long-term programs expected to run for four to six years.
Key undisbursed projects include:
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Sustainable Power and Irrigation Project ($500 million)
- Signed: September 26, 2024
- Total Project Cost: $700 million
- Executing Agency: Federal Ministry of Water Resources and Sanitation
- Focus: Integrating water, energy, and food security through dam safety, irrigation, and hydropower planning
- Expected Completion: December 31, 2029
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HOPE – Governance Project ($500 million)
- Focus: Cross-cutting reforms in human and financial resource management
- Part of the broader Human Capital Opportunities for Prosperity and Equity (HOPE) Programme
- Expected Completion: December 31, 2029
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HOPE – Primary Healthcare Provision Strengthening Project ($500 million)
- Focus: Expanding access to quality healthcare at the facility level
- Completion Date: June 30, 2029
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Rural Access and Agricultural Marketing Project (RAAMP)
- Loans: $357 million, $86 million, and $57 million (total: $500 million)
- Signed: December 2024
- Implementing Ministry: Federal Ministry of Agriculture and Food Security
- Target: Improving rural road networks and agricultural market access
- Project End Date: December 31, 2030
Why It Matters
The delays come at a critical time for Nigeria, as the country grapples with fiscal constraints, rising inflation, and mounting debt servicing obligations. While World Bank loans—particularly from IDA—offer concessional terms, timely disbursement remains essential for achieving development targets.
Experts say delayed access to funds not only stalls project implementation but also erodes the economic benefits tied to infrastructure development, service delivery, and job creation.
Nigeria’s Expanding Loan Portfolio
From June 2023 to August 2025, Nigeria secured World Bank financing for a wide array of projects, positioning itself as one of the bank’s top borrowers globally. While the loans have the potential to transform sectors, concerns persist about implementation bottlenecks, federal-state coordination, and fiscal discipline in managing project funds.
The World Bank maintains that project-specific disbursement schedules and milestones are publicly available on its portal, allowing for transparency and accountability.