FG to deploy $500m World Bank loan in education, healthcare sectors

The federal government plans to roll out a $500 million loan scheme to enhance “financial and human resource management” in basic education and primary healthcare.

Assad Hassan, the national coordinator of the HOPE-Governance programme, briefed Deborah Odoh, permanent secretary of the federal ministry of budget and economic planning, on Tuesday in Abuja.

He said $480 million will serve to incentivise the states to achieve the disbursement-linked results in the two sectors.

The $20 million covers a project financing component with three key core areas for implementation.

These include programme coordination, verification of results at the state level (as well as monitoring and evaluation), and technical assistance for  implementing agencies.

The implementing agencies include theUniversal Basic Education Commission (UBEC), ministerial oversight committee of the basic health care provision fund at the federal ministry of health, and the federal ministry of budget and economic planning.

The national coordinator also identified the programme’s key focus areas as increasing financing for the two sectors and enhancing accountability in budgeting and audit for basic education and primary healthcare.

The scheme, he added, will support the recruitment of teachers and primary healthcare workers to address manpower gaps in both sectors.

“Our primary objective is to see how we improve financial and human resource management in these two sectors by focusing on three key areas: the first is increase in funding for the two sectors,” Hassan said.

“In this regard, we are working with the UBEC  as well as the ministerial oversight committee, basic health care provision fund in the federal ministry of health and their counterparts at the states level.

“Then the second key area is to enhance transparency and accountability in the budget for both sectors, audit report, citizens format budget. Basically it is about public financial management in the two sectors.

“Then the third and final area. We want to see improved recruitment and retention of teachers as well as primary health workers.”

STATES TO HAVE DISBURSEMENT INDICATORS 

Hassan said the states have six disbursement linked indicators, which would be tracked by the World Bank-supported HOPE-Governance Program and appraised by independent verification agents before funds are released to the states.

He said the World Bank approved the HOPE-GOV Program in September 2024, following the successful negotiation of the financing agreement in the preceding month.

Hassan said the federal executive council granted approval for it in February 2025 and the programme was subsequently declared effective in September 2025.

He added that, to date, all 36 states of the federation and the FCT have expressed interest in participating in the programme, while subsidiary agreements have been dispatched to the states for signing.

Hassan said the state governments are expected to invest in the disbursement linked indicators under the programme for results before accessing the programme’s incentives.

“The way the program is designed, you achieve something this year and you get incentivised so that you put that money back to work on the second year results,” he said.

He said interim verification agents, who would verify the first year results by the state governments, will soon be hired.

In her response, Odoh, expressed her readiness to support the programme to attain its objectives.

She also commended the programme for the achievements recorded within its short period of implementation.