The World Bank has given Nigeria an extra $65 million loan to support its procurement and governance reforms. This new funding increases the total support for the SPESSE project (Sustainable Procurement, Environmental, and Social Standards Enhancement) to $145 million.
The bank approved the funding on June 24, 2025, six days ahead of schedule. This early approval points to the World Bank’s strong support for Nigeria’s efforts to improve transparency, reduce corruption, and boost public sector performance.
SPESSE Project Moves to Active Stage
Also, the World Bank listed the SPESSE project as “Bank Approved”, meaning the new phase is ready to start. The bank had earlier approved an $80 million loan in February 2020, which helped Nigeria launch the first phase of the project in 2021.
Through SPESSE, Nigeria plans to strengthen how it manages procurement systems, environmental standards, and social policies in both the public and private sectors. The goal is to build stronger institutions and ensure public funds are used responsibly.
Nigeria Plans to Expand E-Procurement System
With the new funding, Nigeria will expand the use of its Electronic Government Procurement (e-GP) platform. This digital system will help reduce delays in public spending, cut red tape, and improve how government contracts are handled.
By making procurement records digital and open to the public, the e-GP platform will also help fight corruption and increase transparency in government transactions.
The Nigerian government will also use the funds to train more people to handle public procurement professionally. In the first phase, officials trained over 33,000 people. The next phase will train at least 25,000 more, helping to improve service delivery across the country.
The earlier loan will expire in June 2026, while the new funding will run until June 2029, giving Nigeria enough time to complete and grow the reforms.
Nigeria’s Debt to World Bank Rises
Nigeria’s new loan adds to its total debt to the World Bank, which reached $18.23 billion by March 2025. That figure rose from $17.81 billion in December 2024 and $15.45 billion in March 2024.
According to the Debt Management Office, Nigeria owes $16.99 billion to the International Development Association (IDA) and $1.24 billion to the International Bank for Reconstruction and Development (IBRD). Loans from the World Bank now make up 39.6% of Nigeria’s total external debt, which stands at $45.98 billion.
Despite concerns about rising debt, Nigerian officials and World Bank representatives believe that projects like SPESSE are essential. They say the reforms will help build reliable public systems, improve services, and make sure public money is spent wisely.
The World Bank and the Nigerian government plan to give regular updates on how the project is going, including progress made, money spent, and results achieved.
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