242
By Lizzy Chirkpi
Nigerians are unhappy with the recent World Bank approval of two new loans totaling $632 million for the country. According to the bank’s website, $80 million will support the Accelerating Nutrition Results in Nigeria 2.0 project, while $552 million will fund the HOPE for Quality Basic Education for All program. These loans, approved on Monday, are intended to improve nutrition and education outcomes.
This approval follows a previous $500 million loan granted on March 28, 2025 for the Community Action for Resilience and Economic Stimulus Programme.
Reacting on X (former Twitter) to a post made by an online blog, the citizens accused the government of mortgaging the entire future of tomorrow’s leaders.
According to @Maysbabs: “Loans upon Loans , they have mortgaged the entire future of tomorrow’s leaders: 9ja is finished with removal of subsidy no action, no outcome.”
@Kunmiadelokiki wrote: “If the reforms are truly working, why the endless cycle of loans? Tinubu is a colossal disaster for the Federal Republic of Nigeria.”
@Henryoo63 said, “Subsidy gone- Mr President why ?
We have to bear the hardship so we can strengthen our economy
Task collection tripped- Mr president why ?
To generate more revenue for infrastructure
Electric bills tripped, everything tripped but still
he’s still borrowing from world bank.”
Meanwhile, the escalating Nigeria’s debt and poverty nexus have been a significant upward trajectory. This raises concerns about the country’s ability to service its debt obligations, potentially diverting resources away from crucial social programs.
A large portion of government revenue is now used to service debts. This reduces the amount of money available for investments in education, healthcare, and infrastructure, which are vital for poverty reduction.
Despite its economic potential, Nigeria grapples with high poverty rates. A significant portion of the population lives below the poverty line, facing challenges such as food insecurity, limited access to healthcare, and inadequate education.
The regional disparities in poverty are pronounced, with northern Nigeria experiencing particularly high poverty rates.Similarly, the inflation rate within the country has also contributed to the increase of citizens living in poverty.
It is vital that Nigeria uses the funds in a way that creates long term economic growth, so that the nation can begin to reduce its debt, and poverty rates.
In essence, the World Bank’s loans represent an effort to address critical human development needs in Nigeria. However, their effectiveness will depend on sound economic management and a commitment to poverty reduction.
Nigeria’s debt profile is a subject of significant economic discussion. According to data from the Debt Management Office (DMO) and the National Bureau of Statistics (NBS), as contained in the quarterly report of Q3 2024, the total public debt, and sub-nationals, reached N142.3 trillion as of September 30, 2024.