The Federal Government of Nigeria is currently negotiating a $500 million loan from the World Bank to boost basic education, with a focus on improving learning outcomes and reducing the number of children without schooled.

According to the Program Information Document (PID) accessed by Nairametrics, the loan is part of the World Bank’s HOPE for Quality Basic Education for All initiative.

The project, which is expected to receive formal approval by March 2025, aims to address Nigeria’s educational challenges and improve access to early childhood, primary and lower secondary education.

The project will cost $554 million to operate

The total cost of the operation is estimated at $554 million, of which $500 million will come from the World Bank, while the remaining $54 million will come from funding from the Global Partnership for Education (GPE).

The PID said: “The HOPE-Education operation will be financed by an IDA credit from the World Bank of US$500 million and a GPE grant of US$54 million. The Bank was selected as one of two grant agents (along with UNICEF which will manage the remaining $54 million) for the implementation of the System Transformation Grant (STG) of $107.59 million; Program design, supervision and technical assistance for implementation support will be aligned between the two agents.

The initiative aligns with Nigeria’s Universal Basic Education (UBE) framework, targeting regional disparities and promoting equal access to education. It aims to reduce the staggering 17.1 million children aged 5 to 14 who are currently out of school.

According to the PID, special attention will be given to reducing the educational gap between the northern and southern regions, where schooling levels in the north are significantly lower.

The Federal Ministry of Finance, in collaboration with the Federal Ministry of Education and the Universal Basic Education Commission (UBEC), will oversee the implementation of the project.

The loan will be deployed to improve the quality of education through capacity building initiatives, provide grants to community schools and finance infrastructure development.

This loan is part of Nigeria’s broader human capital development strategy, which aims to build a skilled and productive workforce by 2030. Complementary efforts such as the National Food-Based School Feeding Program local products will help reduce the financial burden on parents and encourage greater schooling.

Three in one loan program

The PID notes that the HOPE-Education project is part of a broader framework involving two other related initiatives.

The first, HOPE-Governance (HOPE-GOV), focuses on improving the management and distribution of education and health financing, improving transparency and strengthening government performance. labor.

The second, HOPE-Primary Health Care (HOPE-PHC), aims to improve the quality and reach of health services.

The World Bank approved $500 million for HOPE-GOV and $570 million for HOPE-PHC on September 26, 2024.

Approval of the HOPE-Education project is expected on March 20, 2025, making it the final installment of these interrelated initiatives.

What you need to know

Under the administration of President Bola Tinubu, Nigeria has secured $6.45 billion in loans from the World Bank in the last 16 months to finance various projects, including $750 million for the power sector, 500 million dollars for women’s empowerment, $700 million for girls’ education and $750 million for renewable energy.

• At the launch of the Nigeria Development Update report on Thursday in Abuja, the World Bank Country Director for Nigeria, Dr. Ndiame Diop, reaffirmed the institution’s commitment to supporting Nigeria’s reform agenda.
• Diop stressed that the World Bank remains willing to provide more loans and technical assistance to Nigeria’s federal and state governments.
• Data from the Debt Management Office (DMO) shows that as of March 31, 2024, Nigeria owed $15.59 billion to the World Bank.
• The country also became the third largest borrower from the World Bank’s International Development Association (IDA) as of June 30, 2024, reflecting a notable increase in borrowing.
• World Bank financial statements show Nigeria’s exposure to IDA increased by 14.4% from $14.3 billion in FY 2023 to $16.5 billion in 2024 .
• This increase of $2.2 billion took Nigeria from fourth largest IDA borrower to third largest.

This debt is separate from loans provided by the World Bank’s International Bank for Reconstruction and Development (IBRD).

---

Follow us for the latest news and market insights.