By Peter Omopo
September 6, 2025 | Abuja
The World Bank has explained why six loans worth $2bn, signed for Nigeria in 2024, are yet to be disbursed nearly a year after approval.
The clarification comes amid reports that the Bank approved a total of $8.4bn (₦12.89tn) in fresh loans for Nigeria between June 2023 and August 2025. The funds were earmarked for 15 projects covering energy, healthcare, education, rural infrastructure, and governance.
According to the Bank, disbursement delays are linked to the nature of its financing model, which releases funds in installments tied to project milestones, rather than as lump sums.
“Projects financed by the World Bank run for a certain time. The total amount is not disbursed as a one-off, but in installments depending on the financing instruments—such as IPF or PforR—that require milestones for specific disbursement values,” said Mansir Nasir, the Bank’s Senior External Affairs Officer. He added that new projects must also meet agreed conditions between the Bank and the Federal Government before funds are released.
Data from the Bank’s loan portal showed that of the $4.25bn (₦6.5tn) loans signed for Nigeria in 2024, six—worth about $2bn—remain undisbursed. Three of them, signed on September 26, 2024, include:
- $500m for the Sustainable Power and Irrigation Project, to be executed by the Federal Ministry of Water Resources and Sanitation, focusing on irrigation, dam safety, and hydropower planning.
- $500m for the HOPE-Governance Project, targeting reforms in financial and human resource management.
- $500m for the Primary Healthcare Provision Strengthening Programme, aimed at boosting human capital development.
Each of the projects is expected to run until at least 2029.
In December 2024, the Bank approved three additional loans—$357m, $86m, and $57m—for the Rural Access and Agricultural Marketing Project under the Federal Ministry of Agriculture and Food Security, scheduled to close in 2030.
The $8.4bn total lending to Nigeria in the past two years comprises $1.95bn from the International Bank for Reconstruction and Development (IBRD), which provides loans on near-commercial terms, and $6.5bn from the International Development Association (IDA), which offers highly concessional financing.
Despite the pending disbursements, the projects remain part of Nigeria’s broader partnership with the World Bank, which says progress depends on government compliance with agreed milestones.
