The World Bank is considering a substantial $1.65 billion loan for Nigeria, aimed at addressing some of the country's most pressing economic challenges. The loan, which is currently under review, is intended to support three key projects: Solutions for the Internally Displaced and Host Communities, HOPE for Quality Basic Education for All, and Accelerating Nutrition Results in Nigeria 2.0.

According to the World Bank's website, the first project has a $300 million commitment and is slated for approval on April 8, 2025. The HOPE project, worth $553.8 million, is scheduled for approval on March 20, 2025, while the Accelerating Nutrition Results in Nigeria 2.0 project, valued at $800 million, will be discussed on February 20, 2025.

This loan is part of a larger trend, as Nigeria has secured loans worth $6.95 billion from the World Bank over the past 18 months. This number increases to $7.45 billion when including a $500 million loan approved on December 13, 2024, under the Rural Access and Agricultural Marketing Project—Scale Up. This marks the 10th loan project from the World Bank under the administration of President Bola Tinubu.

In September, the World Bank approved a $1.57 billion loan package for Nigeria as part of a new initiative to strengthen the nation's education and health systems. As of June, Nigeria held the highest debt to the World Bank's International Development Association (IDA), totaling $16.6 billion.

A recent report by Fitch Solutions, a UK-based business consultancy firm, noted that budget deficits are set to persist in Africa. The report, titled "Return To International Capital Markets Belies Persistence Of Fiscal Risks In Sub-Saharan Africa," stated that some Sub-Saharan African countries, including Uganda, Nigeria, and Ghana, would continue to rely on borrowing from domestic and international sources to finance budget deficits in 2025, despite the region's progress toward fiscal consolidation.

The loan consideration comes as Nigeria faces significant economic challenges, including a high debt burden and persistent budget deficits. The World Bank's support is crucial in addressing these challenges and promoting sustainable economic growth in the country.

In conclusion, the proposed $1.65 billion loan from the World Bank is a critical step towards addressing Nigeria's economic challenges. As the country continues to navigate its fiscal struggles, this loan has the potential to make a significant impact on the lives of millions of Nigerians, particularly in the areas of education, nutrition, and support for internally displaced persons.