World Bank Grants Nigeria $1.5 Billion Loan For Subsidy Removal, Tax Reforms

The World Bank has approved a $1.5 billion loan to support Nigeria’s ongoing economic reforms under President Bola Tinubu’s administration. 

The funds will be used for subsidy removal, tax reforms, and other critical interventions aimed at stabilizing the economy.  

This represents the fastest disbursement Nigeria has received under the World Bank’s Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing initiative.  

The loan, initially approved on June 13, 2024, was disbursed in two tranches. The second tranche, received in November, was contingent upon Nigeria meeting reform conditions set by the World Bank.  

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Among the key initiatives funded by the loan is the “Solutions for the Internally Displaced and Host Communities Project,” which will receive $300 million to improve education, health, and nutrition for internally displaced persons (IDPs).  

Additionally, the “HOPE for Quality Basic Education for All” project is set to receive $553.8 million to enhance educational opportunities in underserved areas, with approval expected by March 2025.  

The largest share of the funding, $800 million, is allocated to the “Accelerating Nutrition Results in Nigeria 2.0” initiative, aimed at combating malnutrition and expected to gain approval by February 20, 2025.  

“This loan will provide critical support to Nigeria’s vulnerable populations, improve access to education and healthcare, and strengthen nutritional outcomes,” the government stated.