The World Bank has approved an extra credit of $65 million for Nigeria as part of the Sustainable Procurement, Environmental, and Social Standards Enhancement project.
This new loan brings the total funding for the project to $145 million. According to the official records from the Washington-based organization, the approval was given on June 24, 2025, which is earlier than the expected date of June 30, 2025.
The project is now marked as ‘active’, and the World Bank has confirmed that it has reached the ‘Bank Approved’ milestone.
The SPESSE initiative commenced in 2021 following the approval of an initial loan amounting to $80 million in February 2020. Its objective is to strengthen Nigeria’s procurement systems and improve adherence to environmental and social standards across both public and private sectors.
The newly allocated funds will be utilized towards expanding key initiatives, particularly the implementation of the Electronic Government Procurement (e-GP) system. This platform is anticipated to improve the process, minimize delays in procurement, and promote more efficient use of public resources.
As for the extra funding, a document obtained from the bank mentioned, “The AF will maintain the PDO of the parent project without any changes. The project development objective is to develop sustainable capacity in managing procurement, environmental, and social standards in both the public and private sectors.”
The new funding will aid in certification programs aimed at professionalizing Nigeria’s procurement workforce. So far, over 33,000 people have been trained through the project; however, government assessments indicate that more than 25,000 public officials still need training.
The SPESSE initiative has been praised for its role in reducing inefficiencies and corruption in public procurement, while also promoting inclusive procurement that benefits both small and medium-sized enterprises, including those owned by women.
Even though the parent project is scheduled to end on June 30, 2026, the additional funding is expected to continue until June 30, 2029, according to the World Bank.
“The parent credit will conclude on June 30, 2026, with no possibility for an extension; however, the AF is scheduled to terminate on June 30, 2029,” stated the World Bank document.
This project is a vital component of Nigeria’s public sector reform strategy, particularly as the nation faces financial challenges and seeks to improve service delivery through the development of institutional capacity.
Data from the Debt Management Office indicated that Nigeria’s total debt to the World Bank rose to $18.23 billion by March 2025, which comprises $16.99 billion from the International Development Association and $1.24 billion from the International Bank for Reconstruction and Development.
This shows a continued increase from $17.81 billion in December 2024 and $15.45 billion in 2023. By March 2025, Nigeria’s total external debt stock hit $45.98 billion, with World Bank loans making up about 39.6 percent of that total, up from 38.9 percent at the end of 2024 and 36.4 percent the year before.
