The Federal Government is currently in advanced discussions with the World Bank to secure an additional $65m for the Sustainable Procurement, Environmental, and Social Standards Enhancement Project, according to findings by Sunday PUNCH.

This financing boost will raise the total project funding to $145m if approved, and is expected to be finalised by June 30, 2025. Based on information obtained from the website of the Washington-based lender, the World Bank approved an initial loan of $80m for the SPESSE project in February 2020, aimed at reforming Nigeria’s procurement processes and enhancing compliance with environmental and social standards.

On the project’s objective, a document obtained from the bank by Sunday PUNCH on Friday, “The project development objective is to develop sustainable capacity in managing procurement, environment, and social standards in the public and private sectors.”

However, following recent developments, the World Bank has agreed to increase the financing to $65m, bringing the total commitment to $145m. On the additional financing, the document read, “The AF will maintain the PDO of the parent project without any change. The project development objective is to develop sustainable capacity in managing procurement, environment, and social standards in the public and private sectors.”

The project, which became effective in March 2021, has already made significant strides in improving Nigeria’s public procurement systems, addressing inefficiencies and corruption, and fostering greater compliance with environmental and social standards.

With over 33,000 participants already trained in procurement and E&S practices, the initiative has played a crucial role in modernising Nigeria’s procurement framework.

The proposed $65m additional financing will help expand these efforts, particularly through the establishment of the Electronic Government Procurement system, which is expected to improve transparency, reduce procurement delays, and ensure more efficient use of public funds.

The e-GP system will also promote inclusive procurement, benefiting small and medium-sized enterprises, including women-led businesses. Alongside the e-GP system, the project will focus on strengthening Nigeria’s environmental and social safeguards.

The additional funds will also be used to scale up certification programmes aimed at developing a new generation of procurement professionals across Nigeria’s public sector, which remains a key challenge for the country.

A demand survey has revealed that over 25,000 government staff still require training in procurement and social standards. The World Bank’s financing for the SPESSE project is crucial for institutionalising procurement practices in Nigeria, ensuring that systems remain transparent and efficient.

This is especially important as the country grapples with ongoing economic challenges, including rising poverty and fiscal inefficiency. The $65m financing increase is set to further accelerate the implementation of the project, helping to meet the growing demand for sustainable procurement practices and the professionalisation of the workforce.

The final approval of the additional loan is expected to take place by June 30, 2025. “The parent credit will be closed on June 30, 2026, without any extension; however, the AF is proposed to be closed on June 30, 2029,” the World Bank document noted.

Data from the Debt Management Office showed that Nigeria’s total debt to the World Bank increased by $2.36bn in 2024. This pushed the country’s total debt to the World Bank — which includes borrowings from the International Development Association and the International Bank for Reconstruction and Development — from $15.45bn in 2023 to $17.81bn as of December 2024.

Sunday PUNCH observed that debt to the IDA rose from $14.96bn to $16.56bn, while loans from the IBRD climbed significantly from $485.54m to $1.24bn. By the end of 2024, Nigeria’s total external debt stood at $45.78bn, with the World Bank’s share of $17.81bn accounting for 38.9 per cent of that figure, up from 36.4 per cent a year earlier.

Within the multilateral category, the World Bank now represents 79.8 per cent of Nigeria’s total multilateral debt, which stood at $22.32bn at the end of 2024.