The federal government of Nigeria is said to be discussing a new $500 million loan from the World Bank to enhance human capital development in the country.
The loan, called Nigeria Human Capital for Opportunities and Empowerment (HOPE), aims to boost human capital services, especially in basic education and primary healthcare.
Nigeria owed the World Bank $14.58 billion in external debt as of September 30, 2023.
The proposed HOPE project, initially planned at $1.5 billion, has now been reduced to $500 million, as reported by Daily Times.
The main goal of the project is to improve the allocation and use of financial and human resources in basic education and primary healthcare.
If approved by the World Bank Group’s board, the loan will be implemented in 2024, with an expected approval date of May 23, 2024, and an appraisal date estimated to be April 16, 2024.
The agencies responsible for carrying out the project include the Basic Healthcare Provision Fund (BHCPF), the Federal Ministry of Education, the Federal Ministry of Health, and the Universal Basic Education Commission.
This project will be available to all 36 states in Nigeria and the Federal Capital Territory, with a focus on improving basic and junior education outcomes and enhancing universal health coverage, especially for women.
In recent times, Nigeria has obtained multiple loans from the World Bank amounting to $2.7 billion. These loans are designated for sectors like power, women’s empowerment, girls’ education, and renewable energy.
The country’s dependence on external funding for national development initiatives has sparked conversations and worries about the increasing costs of servicing external debt.
As per the World Bank’s International Debt Report for 2023, Nigeria was the largest beneficiary of new loans in 2022, receiving approximately $2.9 billion.
