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FG seeks $500m World Bank loan for health sector renewal initiative
The Nigerian government is negotiating a $500 million loan with the World Bank to support its recently approved Health Sector Renewal Investment Initiative (HSRII).
This funding is part of a broader effort to address the country’s critical health challenges.
According to a World Bank appraisal document, the loan will be provided under the “Nigeria: Primary Healthcare Provision Strengthening Program.”
The document outlines the program’s goals, stating, “The proposed PforR Program is grounded in the Nigeria Health Sector Renewal Investment Initiative (NHSRII) launched in December 2023 — an ambitious and transformative initiative aiming to improve both health outcomes and economic potential by drastically reducing Nigeria’s maternal and under-five mortality rates.”
The loan is expected to be approved on September 26, 2024. The World Bank’s Program Information Document (PID), updated on August 16, 2024, highlights that this loan is a key component of the HSRII, which seeks to enhance the utilization of quality essential health services and strengthen the resilience of Nigeria’s health system.
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Launched in December 2023, the HSRII is designed to improve health outcomes and unlock Nigeria’s economic potential by significantly reducing preventable deaths through targeted investments in primary healthcare.
The initiative also aims to fortify community-based service delivery and enhance the capacity of primary healthcare facilities, marking a critical step toward achieving universal health coverage in Nigeria.
The World Bank’s involvement is expected to attract additional support from other development partners, with the loan forming the bulk of the $570 million total financing package for the program.
The remaining $70 million is expected to come from trust funds. The Federal Ministry of Health will oversee the implementation of this initiative.
President Bola Tinubu, through the Federal Ministry of Health and Social Welfare, unveiled the HSRII in December last year to ensure universal health coverage in the country.
His administration has prioritized the health sector with significant investments and increased budget allocations for 2024. Recently, Dr. Muntaqa Umar Sadiq was appointed as the National Coordinator of the Sector-wide Coordinating Office-Programme Management Unit (SCO-PMU) for the HSRII.
In a recent statement, the Federal Government announced that it has mobilized $2.2 billion in external financing for the NHSRII. Nigeria’s debt to the World Bank has risen by $1.07 billion under President Tinubu’s administration, with the country securing a total of $4.95 billion in loans amid concerns over rising external debt servicing costs.
The World Bank is expected to approve four loan projects totaling $2 billion for Nigeria this year. As of March 31, 2024, Nigeria owes the World Bank a total of $15.59 billion, according to the Debt Management Office (DMO).