Nigeria Secures $500mn World Bank Loan for Human Capital Development
By Patience Ikpeme
The Federal Government of Nigeria has secured a $500 million loan facility from the World Bank to bolster its Human Capital Opportunities for Prosperity and Equity (HOPE) project.
The funds will be used to enhance basic education and primary healthcare services across the country.
Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, revealed that the loan will improve the availability and effectiveness of financing for these crucial sectors, promoting transparency, accountability, and better performance management of teachers.
Bagudu stated that the Nigerian Constitution provides the legal framework for the budget process, empowering both federal and state governments to make expenditures necessary for public services.
He assured the IMF team that the government’s economic reforms, including fuel subsidy removal and foreign exchange market liberalization, are essential steps toward economic recovery.
The IMF Mission Chief for Nigeria, Axel Schimmelpfennig, commended the government’s tax reforms and expressed the IMF’s willingness to provide further support to Nigeria’s developmental needs. He acknowledged the challenges faced by the country, particularly the impact of fuel subsidy removal on citizens.
The Permanent Secretary of the Ministry of Budget and Economic Planning, Dr. Vitalis Emeka Obi, briefed the IMF team on the ministry’s role in coordinating Nigeria’s development planning and budgeting processes. He highlighted the government’s commitment to accelerating investments in 2025.
This significant World Bank loan will contribute to Nigeria’s efforts to improve human capital development, enhance the quality of education and healthcare services, and ultimately foster economic growth and social progress.
