The Nigerian government and the World Bank have struck a new partnership to track poverty and boost the living standards of Nigeria’s vulnerable populations.

The development comes as the Independent Media and Policy Initiative (IMPI) said the claim of Senator Ali Ndume on World Bank loans secured by President Bola Tinubu’s government was a misrepresentation of facts.

World Bank to release $17bn to Nigeria

The World Bank, via various initiatives, is releasing $17 billion to Nigeria for poverty alleviation.

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Ousmane Diagana, World Bank’s Regional Vice President for Western and Central Africa, disclosed this at a meeting with the Minister of Humanitarian Affairs and Poverty Reductions, Yilwatda Nentawe, and Yusuf Sununu, the Minister of State for Humanitarian Affairs and Poverty Alleviation.

Diagana said the World Bank’s partnership is anchored on a strategy of providing quality services to the people via employment opportunities and schemes.

The group supports FG’s World Bank loans

According to him, the digital identity offers social and financial inclusion to many Nigerians who were not socially inclusive before and were financially excluded in Nigeria.

The Guardian reporting said that IMPI chairman, Omoniyi Akinsiju, said that Ndume’s criticism displayed a narrow knowledge of the multi-dimensional nature of development.

According to Akinsiju, the World Bank loans accounted for 80% of Nigeria's Multilateral debt last year, rising slightly from $21.15 billion in 2023 to $22.32 billion in 2024, representing a 5.5% increase, and not the $9.5 billion Ndume disclosed.

“Meanwhile, Nigeria’s International Monetary Fund (IMF) debt fell sharply from $2.47 billion to $800.23 million (-67.6 per cent) over the same period. This evidence supports the view that the Tinubu administration is not carelessly accumulating debt but carefully balancing and securing new credit for critical sectors and reducing overall public debt,” the report said.

IMPI said that the loans did not bypass legislative scrutiny, saying that the World Bank credit approval process requires approval from internal arms such as the IDA or the IBRD and subsequent concurrence by the National Assembly before disbursement.

The policy group disclosed that the World Bank approved six projects valued at $4.25 billion for Nigeria last year. However, the actual disbursement between 2023 and 2024 was $2.36 billion.

Nigeria’s World Bank debt soars

Legit.ng earlier reported that data from the Debt Management Office (DMO) shows that Nigeria’s debt profile has skyrocketed to N144.6 trillion as of December 31, 2024.

Of that amount, World Bank loans accounted for about $17 billion as of December 31, 2024.

However, Nigerians have reacted to the $17 billion World Bank’s social investment initiatives, disclosing that the country’s debt stock is becoming too much relative to revenue.

Osaze Ebenezer, a social commentator, said the country’s debt service is gulping most of its revenue, leaving less for infrastructure development.

“I read a recent report that said Nigeria’s debt is 51% of its GDP. That is too much compared to the revenue accruing to the country. Debt-to-GDP ratio should be minimal and relative to revenue,” he said.

Fitch predicts Nigeria’s debt servicing to Hit $5.2bn in 2025
Legit.ng previously reported that Fitch Ratings, the American credit rating agency, has projected that Nigeria may spend about $5.2 billion on debt service this year.

The agency stated this in its new rating commentary on Nigeria, where it upgraded Nigeria's long-term foreign currency issuer default rating to B from B-, with a stable outlook.

It said the government’s external debt will rise from $4.7 billion in 2024 to $5.2 billion this year.