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Don’t waste concessional loans, World Bank programme coordinator warns states

by News Break
April 22, 2026
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Don’t waste concessional loans, World Bank programme coordinator warns states
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The National Coordinator of the World Bank-backed HOPE Governance Programme, Assad Hassan, has challenged federal and state governments to fully leverage concessional loans to build robust institutions and sustain governance reforms beyond the scope of external funding cycles.

🚨 BREAKING: Watch the full clip here ➤

Hassan gave the charge on Tuesday in Enugu during the South-East Implementation Support Mission of the programme convened by the World Bank, warning that Nigeria risks repeating a cycle of abandoned reforms if deliberate steps are not taken to institutionalise ongoing interventions.

This was contained in a statement issued by Communications Officer of the HOPE Governance Programme, Joe Mutah.

“Inasmuch as the bank is a significant partner in this, they are gracious enough to give us soft loans, concessionary loans, but I think the onus is on us to make sure that at the end of the day, we see how we can sustain these programs,” he said.

The HOPE Governance Programme is designed to strengthen institutional frameworks in basic education and primary healthcare delivery, with a focus on improving service outcomes at the state level.

Hassan, however, raised concerns over the country’s track record in sustaining reforms initiated under previous World Bank-supported programmes, including the State Fiscal Transparency, Accountability and Sustainability programme.

➜ Play The Video

“What next? I think that question behoves us to look at ourselves in the mirror. What have we done after the precursor to this programme — SFTAS? Did we just receive the incentives and move on?” he asked.

He stressed that the success of the current initiative would depend largely on whether state governments can translate financial support into lasting institutional changes.

“While there have been other World Bank-funded reform programmes in the past, the ability to sustain these reforms and translate them into tangible results will make a significant difference in governance in this country,” Hassan added.

The National Coordinator emphasised that subnational governments must take ownership of reforms as a demonstration of credibility to attract further international support.

He noted that building functional systems in education and healthcare would not only improve service delivery but also position states for future partnerships with development institutions.

As of December 31, 2025, Nigeria’s debt to the World Bank’s International Development Association reached $18.7bn. This represents a significant 11.3 per cent increase from $16.8bn at the end of 2024, placing Nigeria as the third-largest borrower in the IDA portfolio, following Bangladesh and Pakistan.

In his remarks, the Task Team Lead of the programme at the World Bank, Ikechukwu Nweje, said the Bank deliberately adopted the Programme-for-Results model to ensure that reforms are tied to measurable outcomes.

“The Programme-for-Results model is designed to support state governments in building the capacity of their workforce to sustain the reform objectives of the programme,” he said.

Nweje added that the Bank would continue to provide technical support to participating states, while the national coordination unit would deploy consultants to strengthen implementation.

Hassan also commended the Enugu State Government for what he described as significant reforms in basic education and primary healthcare administration.

The implementation support mission, which brought together officials from states across the South-East, was declared open by the Secretary to the State Government, Chidiebere Onyia, on behalf of Governor Peter Mbah.

Nigeria has, over the years, relied on concessional financing from multilateral institutions like the World Bank to drive governance and public sector reforms. These loans, often offered at low interest rates, are designed to support structural improvements in critical sectors.

However, the country has struggled with sustaining reforms after programme cycles end, with many initiatives losing momentum once funding dries up.

The HOPE Governance Programme represents a renewed attempt to address this challenge by linking funding directly to performance outcomes, particularly in education and healthcare, two sectors widely seen as critical to Nigeria’s long-term development.

Hassan’s warning highlights a recurring concern among development partners: that without strong institutional frameworks and political will, even well-funded programmes may fail to deliver lasting impact.

🚨 BREAKING: Watch the full clip here ➤

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