The World Bank has clarified why $2 billion in loans approved for Nigeria in 2024 have not yet been disbursed, nearly a year after the signing. The explanation comes amid reports that the bank approved $8.4 billion (₦12.89 trillion) in new loans for Nigeria between June 2023 and August 2025, spanning 15 projects in critical sectors like energy, education, health, rural infrastructure, and governance.
According to data from the bank’s portal and information obtained by New Daily Prime, six loans signed between September and December 2024, totalling $2 billion, have yet to see any disbursement, sparking questions about possible bureaucratic or institutional delays.
Funds released in stages — Not Lump Sum
In response to inquiries, Mansir Nasir, Senior External Affairs Officer at the World Bank, explained that the disbursement process is incremental and dependent on the type of financing instrument and project milestones.
“Projects financed by the World Bank run for a certain time, which varies depending on the specific project. The total amount of the project is not disbursed as a one-off, but rather in instalments,” Nasir stated.
He noted that project funds are tied to performance-based milestones and only released when conditions agreed upon by the Federal Government and the World Bank are met.
“If you look at the portal, you will see the specific disbursement timelines and values,” he added.
READ ALSO: World Bank delegation assesses Lagos e-procurement system
Breakdown of unreleased loans
Among the nine loans signed in 2024, the following six—worth $2 billion (₦3 trillion)—remain undisbursed as of September 2025:
1. Sustainable Power and Irrigation Project – $500m
-
Signed: 26 September 2024
-
Implementing Agency: Federal Ministry of Water Resources and Sanitation
-
Total Project Value: $700m
-
Closing Date: 31 December 2029
-
Objective: To address water-food-energy challenges via irrigation, dam safety, and hydropower planning.
2. HOPE-Governance Project – $500m
-
Signed: 26 September 2024
-
Objective: To improve financial and human resource management as part of the Human Capital Opportunities for Prosperity and Equity (HOPE) programme.
3. Primary Healthcare Provision Strengthening – $500m
-
Signed: 26 September 2024
-
Closing Date: 30 June 2029
-
Objective: To strengthen primary healthcare systems and human capital.
4. Rural Access and Agricultural Marketing Project – $357m
5. Same Project – Additional $86m
6. Same Project – Additional $57m
-
Signed: December 2024
-
Implementing Agency: Federal Ministry of Agriculture and Food Security
-
Closing Date: 31 December 2030
-
Objective: To boost rural connectivity and market access for agricultural producers.
World Bank’s lending terms
The loans come through two main World Bank arms:
-
International Development Association (IDA): Offers concessional loans and grants for low-income countries.
-
International Bank for Reconstruction and Development (IBRD): Provides commercial or near-commercial loans to creditworthy middle-income nations.
Out of the $8.4 billion approved, about $6.5 billion was sourced from the IDA, while $1.95 billion came through the IBRD.
READ ALSO: World Bank charges CBN on inflation-control measures
What’s causing the delay?
While no specific project bottlenecks were mentioned, delays in disbursement are commonly linked to:
-
Delays in fulfilling project preconditions,
-
Institutional readiness issues in ministries,
-
Lack of counterpart funding, and
-
Procurement and implementation capacity.
The World Bank insists it will only release funds after due diligence and performance triggers are met — a standard approach aimed at ensuring transparency, effectiveness, and impact.
