The Federal Executive Council (FEC) has approved two external loan facilities worth $396 million to fund key humanitarian and health projects across northern Nigeria.
The approval was announced by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, after the council’s meeting on Thursday, which was presided over by President Bola Ahmed Tinubu at the Presidential Villa, Abuja.
According to Edun, the loans are designed to help rebuild communities devastated by conflict, support internally displaced persons (IDPs), and strengthen healthcare delivery systems, particularly in Sokoto State.
“The Federal Executive Council has approved two loan facilities. The first is a $300 million World Bank credit to support internally displaced persons and host communities across several northern states,” Edun explained.
“The second loan is for $96 million for the Sokoto Health Infrastructure Project, which will be co-financed by the Islamic Development Bank and the African Development Bank.”
The first loan, a $300 million credit facility from the World Bank, will fund programmes aimed at addressing the challenges facing internally displaced persons in the North. This includes rebuilding destroyed homes, restoring basic social services, and improving access to education, healthcare, and livelihoods in affected communities.
The northern region, especially states like Borno, Yobe, Adamawa, Kaduna, Katsina, Niger, and Zamfara, has been heavily affected by years of insurgency, banditry, and communal clashes, which have displaced millions of people.
The project, Edun noted, will provide direct support to IDPs and host communities to help them rebuild their lives and strengthen local economies.
The second loan, totalling $96 million, will fund the Sokoto Health Infrastructure Project, a joint initiative between the Islamic Development Bank (IsDB) and the African Development Bank (AfDB). The IsDB will provide $50 million, while the AfDB will contribute $46 million, with the Sokoto State Government expected to provide additional counterpart funding.
The health project aims to expand and modernise healthcare facilities across Sokoto State, upgrade hospitals, and improve access to medical services, especially for women and children.
Nigeria’s North has been grappling with one of the world’s most severe displacement crises, with millions forced to flee their homes due to terrorism, communal violence, and armed banditry.
The United Nations High Commissioner for Refugees (UNHCR) estimates that more than 3 million Nigerians are currently displaced internally, most of them in the North-East and North-West regions.
Over the years, the Federal Government, in partnership with international donors, has implemented several programmes aimed at rehabilitating IDPs and rebuilding affected areas.
The new $300 million World Bank loan is expected to scale up those efforts by focusing on sustainable resettlement, livelihood empowerment, and community rebuilding.
Government officials say the loan will also complement existing projects such as the North-East Development Commission (NEDC) programmes and the National Social Investment Programme (NSIP), both of which aim to support vulnerable populations.
“This initiative shows the government’s commitment to improving the welfare of displaced Nigerians and ensuring that affected communities can recover and thrive again,” a senior finance ministry official said.
The Sokoto Health Infrastructure Project seeks to transform healthcare delivery in the state by renovating hospitals, constructing new primary health centres, and providing advanced medical equipment.
The project will also support the training of healthcare workers and improve access to maternal and child health services.
Sokoto, like many northern states, faces significant challenges in healthcare delivery, including a shortage of qualified medical personnel, outdated infrastructure, and high rates of preventable diseases.
According to data from the National Bureau of Statistics (NBS) and the World Health Organization (WHO), maternal and infant mortality rates in the North-West remain among the highest in Nigeria.
The new project is therefore expected to play a major role in reducing those figures and improving health outcomes for residents.
“This partnership with the Islamic Development Bank and African Development Bank will help transform the health system in Sokoto State,” Edun said.
“It aligns with the administration’s Renewed Hope Agenda, which places strong emphasis on human capital development and access to quality healthcare.”
The approval of these loans reflects President Tinubu’s broader commitment to rebuilding conflict-affected regions and improving public services in northern Nigeria.
Since assuming office, the administration has focused on restoring stability, addressing insecurity, and promoting social and economic recovery in areas hit hardest by insurgency and displacement.
In recent months, the Federal Government has rolled out several development plans, including the National Poverty Reduction and Growth Strategy (NPRGS) and the Renewed Hope Infrastructure Development Initiative, aimed at creating jobs, improving education, and expanding healthcare access nationwide.
The new loans are expected to be implemented under strict monitoring to ensure transparency and effectiveness.
According to the Finance Ministry, both projects will involve collaboration between federal and state governments, as well as international partners, to ensure sustainability and accountability.
“We are working closely with development partners to make sure every dollar is properly utilised. These funds are concessional loans with low interest rates and long repayment periods,” Edun added.
The announcement of the loans has drawn mixed reactions from Nigerians. While many have welcomed the move as a positive step toward addressing the humanitarian crisis in the North, others have expressed concern about the country’s rising debt profile.
Nigeria’s total public debt stood at ₦97.34 trillion as of mid-2024, according to the Debt Management Office (DMO). Economists have warned that although concessional loans can be beneficial, they must be managed prudently to avoid future fiscal strain.
Despite these concerns, humanitarian organisations and civil society groups have praised the government’s efforts to secure support for displaced persons and improve healthcare infrastructure.
“This is a much-needed intervention. Many IDPs have lived in camps for years with little access to education, healthcare, or livelihoods,” said Aisha Abdullahi, a humanitarian advocate based in Maiduguri.
“If properly implemented, this project can help restore dignity and hope to affected communities.”
The Federal Government says it remains committed to rebuilding the North and ensuring that displaced Nigerians are reintegrated into society.
As the projects take off, expectations are high that the funding will bring real improvements to the lives of millions who have endured years of conflict and neglect.
