The World Bank has approved an additional $65 million loan for Nigeria under the Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) project, increasing total funding for the initiative to $145 million. The approval was granted earlier than scheduled, on June 24, 2025, as confirmed by the World Bank’s official records, with the project now marked as “active” and officially reaching the “Bank Approved” stage.
Initially launched in 2021 with an $80 million facility approved in February 2020, the SPESSE project is aimed at strengthening institutional capacity for procurement, environmental, and social standards management in Nigeria’s public and private sectors. The newly approved funds will support the nationwide deployment of the Electronic Government Procurement (e-GP) platform. This digital system is expected to streamline procurement processes, improve transparency, and reduce delays in public spending.
Additionally, the financing will expand training and certification efforts to further professionalise Nigeria’s procurement workforce. Over 33,000 individuals have already been trained in the initial phase, and an estimated 25,000 more public officers are expected to benefit from the extended programme. The World Bank stated that the project’s development objective remains unchanged and continues to focus on building sustainable capacity within key governance systems.
While the original SPESSE credit is set to conclude by June 30, 2026, the newly approved funds will extend the project’s implementation timeline to June 30, 2029, allowing more time for broader execution and impact.
This fresh injection of credit adds to Nigeria’s growing debt exposure to the World Bank. As of March 2025, Nigeria owed the institution $18.23 billion, up from $17.81 billion in December 2024. A breakdown shows that $16.99 billion is owed to the International Development Association (IDA), while $1.24 billion is linked to the International Bank for Reconstruction and Development (IBRD). Loans from the World Bank now account for 39.6% of Nigeria’s total external debt, which stood at $45.98 billion as of March.
As Nigeria continues to rely on concessional loans to support public sector reform and development projects amid limited fiscal space, the SPESSE initiative remains central to broader institutional reform goals. However, growing concerns persist around debt sustainability and the importance of translating such investments into measurable outcomes and long-term improvements.
