Nigeria is set to receive a $500 million loan from the World Bank to address critical challenges in the country’s education and healthcare sectors. The loan, part of the Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE) Governance Program, aims to tackle staffing gaps and enhance performance management of basic education teachers and primary healthcare workers.
The World Bank is expected to approve the loan on September 26, 2024. The loan will focus on three major result areas, including the improvement of recruitment, deployment, and performance management of sector workers. This effort is crucial given Nigeria’s alarming human capital index, which indicates that a child born in the country today will only achieve 36% of their productive potential if current levels of health and education services persist.
The loan will incentivize improvements in workforce planning within the education and healthcare sectors, providing financial resources to enhance recruitment processes and ensure qualified professionals are deployed to where they are most needed. The initiative will also address significant disparities in staffing across Nigeria’s regions.
To tackle payroll fraud, the loan will support the adoption of new systems, including the Central Bank of Nigeria’s Bank Verification Numbering (BVN) system and National Identity Numbers (NIN) platforms. These systems will ensure funds are used efficiently and only verified employees are on the payroll, eliminating ghost workers.
The loan program will run from 2024 to 2028, providing support for systemic reforms at both the state and federal levels. The loan will incentivize the reduction of staffing gaps by 40%, with a target that at least 30% of new recruits will be women. This gender-sensitive approach aims to address not only the quantity but also the quality and diversity of the workforce in these critical sectors.
The loan is part of a larger $2 billion government program that seeks to accelerate the provision of quality basic education and healthcare services across Nigeria. The program will support systemic reforms, focusing on cross-sectoral issues such as financial resource allocation, public financial management, fiscal transparency, and accountability.
