Nigeria has tapped an additional $215 million from the World Bank under the $800 million National Social Safety Net Programme-Scale Up, bringing the total disbursement to $530 million as of early May 2025. This loan aims to provide conditional cash transfers to the country’s poorest and most vulnerable citizens to cushion the effects of economic shocks, including the removal of the petrol subsidy.
Background and Details of the Loan
- The $800 million facility was approved in December 2021 to support palliative measures through monthly cash payments initially set at N5,000 per household but later increased to N25,000 for three months under the Bola Tinubu administration, targeting 15 million households nationwide.
- Prior disbursements included $300 million in October 2023 and $15 million in November 2023, with the recent $215 million injection raising the total World Bank release to $530 million, leaving about $227 million still available for future drawdowns.
- Despite delays in fund utilization, Nigeria incurred over $6.18 million in interest charges on the loan during the disbursement lag, with payments made as recently as January and July 2024.
Broader Context of World Bank Support
The World Bank has approved multiple loans to Nigeria in 2025 totaling $2.2 billion across six projects, including economic stimulus, nutrition, education, health security, and digital infrastructure. The National Social Safety Net Programme is part of this broader engagement to strengthen social resilience and economic recovery amid fiscal challenges.
Implications
This additional funding underscores ongoing efforts to mitigate the impact of inflation, subsidy reforms, and economic hardships on vulnerable Nigerians. However, concerns about Nigeria’s rising debt profile and sustainability persist as the country continues to rely heavily on external borrowing, with World Bank loans constituting a significant portion of its external debt.
In summary, the fresh $215 million World Bank loan disbursement enhances Nigeria’s capacity to deliver critical palliative support to millions of households, reinforcing social safety nets amid ongoing economic pressures.
