World Bank Warns Nigeria on Proper Use of Loans

Assad Hassan, the World Bank's program coordinator, cautioned Nigerian states on Tuesday, during a mission in Enugu, about the risks of misusing concessional loans provided by the World Bank. He highlighted that Nigeria could risk repeating cycles of abandoned reforms unless states fully leverage these loans to build robust institutional frameworks for sustainable governance.

Hassan pointed out the country's poor track record in sustaining previous World Bank-supported reforms, particularly in education and healthcare. He stressed that the success of current initiatives depends on whether state governments can translate financial support into lasting institutional changes.

The World Bank has committed to providing technical support to enhance the capacity of state governments. Hassan's remarks come as Nigeria's debt to the World Bank's International Development Association is projected to reach $18.7 billion by December 31, 2025, marking an increase from $16.8 billion at the end of 2024.

He emphasized the importance of strong institutional frameworks to ensure that funding leads to tangible outcomes in critical sectors.