The Federal Government is in advanced negotiations with the World Bank to secure an additional $65 million in funding for the ongoing Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) Project, Sunday AGS has learned.

If approved, the new financing would raise the total World Bank commitment to the project from $80 million to $145 million. The final decision on the additional loan is expected by June 30, 2025, according to information obtained from the World Bank’s official project documentation.

Initially approved in February 2020, the SPESSE project is designed to reform Nigeria’s procurement systems and improve adherence to environmental and social (E&S) safeguards. The project officially took effect in March 2021 and has since delivered major reforms in public procurement, with over 33,000 professionals already trained in procurement and E&S best practices.

A World Bank document reviewed by Sunday AGS states: “The project development objective is to develop sustainable capacity in managing procurement, environment, and social standards in the public and private sectors.” The bank confirmed that the additional financing would maintain the same objective as the parent project.

The proposed $65 million boost will expand the project’s reach, including the establishment of an Electronic Government Procurement (e-GP) system aimed at increasing transparency, reducing procurement delays, and promoting more efficient use of public funds.

The e-GP platform is expected to facilitate inclusive procurement, providing greater access to small and medium-sized enterprises (SMEs) and women-led businesses. The new financing will also strengthen Nigeria’s environmental and social safeguard mechanisms.

In addition, the funds will scale up certification programmes for procurement professionals in the public sector. This comes in response to a recent demand survey revealing that over 25,000 government workers still require formal training in procurement and E&S compliance.

The World Bank views the project as crucial to institutionalising transparent and efficient procurement systems in Nigeria—an urgent need given the country’s fiscal challenges, rising poverty levels, and ongoing efforts to combat corruption in public spending.

According to the project timeline, while the parent credit is expected to close by June 30, 2026, the additional financing will extend implementation through June 30, 2029.

Meanwhile, data from Nigeria’s Debt Management Office reveals that the country’s debt to the World Bank rose by $2.36 billion in 2024, increasing from $15.45 billion in 2023 to $17.81 billion by December 2024.

The debt is composed of loans from both the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). Nigeria’s debt to the IDA rose from $14.96 billion to $16.56 billion, while IBRD loans jumped from $485.54 million to $1.24 billion in the same period.

By the end of 2024, the World Bank accounted for 38.9 per cent of Nigeria’s total external debt of $45.78 billion—up from 36.4 per cent in 2023.

The SPESSE project remains a key part of the federal government’s reform agenda, with the World Bank’s additional support expected to accelerate institutional capacity building and improve accountability across procurement and environmental sectors nationwide.