Nigeria Secures Extra ₦97.5 Billion Credit to Strengthen Transparency, e-Procurement and Skills Development by 2029

 

The World Bank has approved an additional ₦97.5 billion in credit for Nigeria under the Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) project, raising the total investment in the initiative to ₦217.5 billion. This renewed commitment is intended to further strengthen Nigeria’s institutional capacity in managing procurement processes, environmental safeguards, and social standards across both the public and private sectors.

Launched in 2021 with an initial credit of ₦120 billion approved in February 2020, the SPESSE project is a major initiative focused on enhancing governance and professional standards in key sectors. With this new financing, the project will expand its focus, particularly by deploying a nationwide electronic procurement system and scaling up training programmes for public officers.

According to information available on the World Bank’s website, the additional financing was approved on June 24, 2025—six days ahead of the earlier planned date of June 30. The project is now marked as “active,” and its approval status has officially advanced to “Bank Approved.”

One of the major areas of expansion will be the full-scale deployment of the Electronic Government Procurement (e-GP) platform. This digital infrastructure is expected to modernise public procurement processes, improve transparency, reduce red tape, and help ensure more efficient use of public resources.

The World Bank, in a project brief detailing the additional funds, confirmed that the development objectives remain consistent with the original initiative. The goal is to develop sustainable capacity in procurement, environment, and social standards management in both the public and private domains. This additional funding builds on earlier efforts and reinforces the project’s relevance to Nigeria’s institutional reform drive.

Another key aspect of the funding is the expansion of training and certification programmes aimed at professionalising Nigeria’s procurement workforce. Over 33,000 individuals received training during the first phase of SPESSE, but more than 25,000 public officials are still in line for upskilling, based on federal assessments.

The original ₦120 billion credit will officially close by June 30, 2026, and will not be extended. However, the newly approved ₦97.5 billion facility will support activities until June 30, 2029. This extension gives Nigeria an extended timeframe to embed lasting reform mechanisms and reach more beneficiaries.

This new credit, while valuable in supporting reforms, adds to Nigeria’s growing external debt. As of March 2025, the country’s total debt to the World Bank had risen to approximately ₦27.35 trillion, up from ₦26.72 trillion in December 2024 and ₦23.18 trillion in March 2024. The majority of this, about ₦25.49 trillion, is owed to the International Development Association (IDA), with the remainder of ₦1.86 trillion owed to the International Bank for Reconstruction and Development (IBRD).

World Bank loans now account for 39.6% of Nigeria’s total external debt, which stood at around ₦68.97 trillion as of the end of March 2025. This marks a steady increase from 38.9% at the end of 2024 and 36.4% in March 2024, indicating Nigeria’s continued reliance on concessional loans to fund reforms and development initiatives.

While there is growing concern over Nigeria’s rising debt stock, analysts point out that such concessional loans are critical for countries with constrained fiscal space. They argue that the key lies in ensuring that projects like SPESSE deliver measurable outcomes, sustainable improvements, and long-term institutional benefits.

With this additional funding now secured, the focus will turn to implementation and accountability. Monitoring the execution of the project and evaluating its results will be essential to justifying the investments and setting the stage for future reforms. The success of SPESSE could signal a broader transformation in Nigeria’s approach to public sector governance, professional development, and transparent service delivery.