Nigeria has so far received just 16% of the World Bank loans approved during the administration of President Bola Tinubu, raising concerns over the pace of fund utilization and project implementation.
An analysis of the World Bank’s disbursement data reveals that out of a total of $4.95 billion approved for various projects, only $774.99 million has been disbursed as of July 31, 2024. These loans are intended to support critical sectors, including economic reforms, infrastructure development, and social welfare programs.
The disparity between approved loans and actual disbursements highlights challenges in executing these vital projects. Among the significant initiatives is the **Nigeria Reforms for Economic Stabilization to Enable Transformation (RESET) Development Policy Financing (DPF)**, which was allocated $1.5 billion. However, only $751.88 million of this amount has been disbursed since its approval in June 2024.
Another notable project, the **Accelerating Resource Mobilization Reforms Program-for-Results (PforR)**, allocated $750 million, remains entirely undisbursed despite its approval in the same month. This project is aimed at strengthening Nigeria’s non-oil revenue streams and safeguarding oil and gas revenues through comprehensive tax and administrative reforms.
The Nigeria Distributed Access through Renewable Energy Scale-up Project**, designed to address the country’s electricity access deficit, has also seen no disbursement from its $750 million allocation. Similarly, the **Adolescent Girls Initiative for Learning and Empowerment** has received only $20 million out of a $700 million allocation, with the funds aimed at improving secondary education for girls in selected states.
The **Nigeria for Women Program Scale-Up Project**, targeting the empowerment of women across Nigeria, has witnessed a disbursement of just $1.99 million out of $500 million. Additionally, the first loan approved under Tinubu’s administration, the **Power Sector Recovery Performance-Based Operation**, has only received $1.12 million out of its $750 million allocation.
It is important to note that many of these loans are conditional, requiring specific criteria to be met before further disbursements can occur. These conditions are intended to ensure that the funds are effectively utilized and that the projects achieve their intended outcomes.
The slow disbursement rate raises critical questions about the efficiency of the current administration in leveraging international funds for national development. Furthermore, delays in disbursement could hinder the economic growth and development these loans aim to support.
In a broader context, Nigeria’s reliance on external financing has been under scrutiny, especially given the country’s rising external debt servicing costs. Earlier reports indicated that Nigeria secured a total of $4.95 billion in loans from the World Bank under Tinubu’s administration, amidst growing concerns about the nation’s debt sustainability.
