The World Bank has approved an additional $65 million credit facility for Nigeria under its ongoing Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) project, bringing the total financing to $145 million, The PUNCH has exclusively learned.
According to official documentation from the global financial institution, the new funding was approved ahead of schedule on June 24, 2025 — six days earlier than the expected approval date of June 30.
The project’s status has now been updated to “active,” and the financing has reached the “Bank Approved” stage.
Originally launched in 2021 with an $80 million facility granted in February 2020, SPESSE is a flagship initiative aimed at transforming Nigeria’s public procurement systems while boosting adherence to environmental and social safeguards in both public and private sectors.
The fresh $65 million injection will be directed toward expanding key reforms, including the nationwide implementation of the Electronic Government Procurement (e-GP) system — a digital platform designed to increase transparency, eliminate inefficiencies, and curb corruption in public procurement.
A document obtained from the World Bank states:
“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 additional financing will also support professional certification programmes for Nigeria’s procurement personnel.
So far, over 33,000 individuals have been trained through the project, but government assessments show at least 25,000 more officials still require training.
Experts and stakeholders have widely praised SPESSE for its impact in professionalising public procurement, reducing waste, and encouraging inclusive participation — particularly from SMEs and women-led businesses.
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While the original project is slated to conclude by June 30, 2026, the new funds will extend the project timeline through to June 30, 2029.
The World Bank has clarified that the parent project will close as scheduled, with only the additional financing remaining active.
The expansion of SPESSE comes as Nigeria intensifies public sector reforms amid fiscal tightening and increasing debt exposure.
According to the Debt Management Office, Nigeria’s total debt to the World Bank climbed to $18.23 billion by March 2025 — up from $17.81 billion in December 2024 and $15.45 billion in 2023.
These loans now account for nearly 40% of the nation’s total external debt, which stood at $45.98 billion as of Q1 2025.
With this latest financial injection, Nigeria’s commitment to overhauling its procurement ecosystem and reinforcing institutional efficiency appears to be gaining renewed momentum.