The Federal Government of Nigeria is seeking a fresh loan of $400 million from the World Bank to fund a conditional cash transfer program for 15 million households.
This loan would bring the total borrowed amount for the cash transfer program to $1.2 billion, as the government had previously secured an $800 million loan for the same purpose. The cash transfer program was announced by President Bola Tinubu to cushion the effects of petrol subsidy removal and rising costs of living.
Additionally, the government announced a provisional allowance for junior federal workers and is engaging the World Bank for a fresh $1.5 billion loan for education and healthcare programs. Nigeria currently has a total public debt of N87.38 trillion, with a significant increase in both domestic and external debt within three months.
The Debt Management Office has warned that the government's projected revenue cannot support further borrowing, and measures such as revenue mobilization initiatives, public-private partnerships, and asset privatization/sales should be considered to reduce borrowing and budget deficits.