The proposed Program-for-Results (PforR) Program is founded in the Nigeria Health Sector Renewal Investment Initiative (NHSRII) launched in December 2023, a transformative initiative aiming to reduce maternal and under-five mortality rates, thereby improving health outcomes and economic potential in Nigeria.
Anticipated Loan Approval
The World Bank is expected to approve a significant $500 million loan next month, with the estimated approval date set for September 26, 2024.
Scope of the Loan
According to the World Bank’s Program Information Document (PID) updated on August 16, 2024, the loan forms a crucial component of the Nigeria Health Sector Renewal Investment Initiative. It seeks to bolster the utilization of quality essential health services and fortify the Nigerian health system’s resilience.
Objectives of the NHSRII
The NHSRII, initiated in December 2023, is designed to enhance health outcomes and unlock Nigeria’s economic potential by making targeted investments in primary healthcare. The initiative aims to fortify community-based service delivery and bolster the capacity of primary healthcare facilities, serving as a significant step towards achieving universal health coverage in Nigeria.
Financial Backing and Implementation Oversight
The World Bank’s involvement is anticipated to catalyze additional support from other development partners, with the loan accounting for the majority of the $570 million total financing package for the program. The initiative will be overseen by the Federal Ministry of Health.
Presidential Prioritization and Key Appointments
President Bola Tinubu, through the Federal Ministry of Health and Social Welfare, unveiled the Nigerian Health Sector Renewal Investment Initiative to ensure universal health coverage in the country. He has also demonstrated a prioritization of the health sector through substantial investments and increased budgetary allocations for 2024.
Dr. Muntaqa Umar Sadiq has been appointed as the National Coordinator of the Sector-wide Coordinating Office-Programme Management Unit (SCO-PMU) for the Nigeria Health Sector Renewal Investment Initiative (NHSRII), indicating a strong commitment to driving the initiative forward.
External Financing and Debt Dynamics
The Federal Government has mobilized $2.2 billion in external finance for the NHSRII, and the debt owed to the World Bank has increased during President Bola Tinubu’s administration. Notably, concerns have been raised over rising external debt servicing costs, given Nigeria’s total debt of $15.59 billion owed to the World Bank as of March 31, 2024.
Future Loan Prospects
In addition to the anticipated $500 million loan, the World Bank is considering approving four loan projects totaling $2 billion for Nigeria this year, reflecting substantial financial support for the country’s developmental initiatives, particularly in the health sector.
Source: NairaMetrics