Nigeria Secures Additional \$215 Million World Bank Loan for Palliatives

The World Bank has released additional funds to Nigeria under the $800 million National Social Safety Net Programme-Scale Up, increasing the total disbursement to $530 million, according to reports by The PUNCH.

Checks on the World Bank’s website on Thursday revealed that the total amount disbursed had risen from $315 million in 2023 to $530 million in 2025, indicating a recent inflow of $215 million. However, the exact date of the latest disbursement remains unclear, as the World Bank has not yet updated its portal to reflect the transaction details as of April 30, 2025.

The $800 million facility, approved on December 16, 2021, is designed to provide conditional cash transfers to Nigeria’s most vulnerable citizens, mitigating the impact of economic challenges, including the removal of fuel subsidies. The initial plan involved monthly payments of N5,000 to targeted households, but this was later adjusted to N25,000 for three months under the Bola Tinubu administration, aiming to reach 15 million households nationwide.

Of the $800 million loan, approximately 66.25% has now been disbursed, with around 33.75% (or $226.73 million) remaining. Despite the program’s approval in 2021, its rollout was delayed by nearly 17 months, during which Nigeria incurred significant interest charges.

Between January and July 2024, Nigeria paid over $6.18 million in interest charges under the financing agreement IDA-70190, including $1.81 million in January and over $5.36 million in July. These payments were made despite delays in accessing the funds, largely due to administrative issues, political transitions, and financial scandals within the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.

The ministry faced intense scrutiny after the Economic and Financial Crimes Commission (EFCC) uncovered alleged fraud involving over N37.1 billion in late 2023. Former Minister Sadiya Umar-Farouq was detained in January 2024 over allegations of fund misappropriation, while her successor, Dr. Betta Edu, was suspended by President Bola Tinubu in the same month over similar claims involving a N585 million transaction.

In response, President Tinubu appointed Finance Minister Wale Edun to lead a special investigative panel tasked with restructuring the management of Nigeria’s social investment programmes to enhance transparency and accountability.