Don’t Waste Concessional Loans, World Bank Programme Coordinator Warns States

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The National Coordinator of the World Bank-backed HOPE Governance Programme, Assad Hassan, has urged federal and state governments to properly utilise concessional loans to strengthen institutions and ensure that governance reforms outlive external funding cycles.

Hassan gave the warning on Tuesday in Enugu during the South-East Implementation Support Mission of the programme, stressing that Nigeria risks repeating a cycle of abandoned reforms if deliberate steps are not taken to sustain ongoing interventions.

In a statement issued by the Communications Officer of the HOPE Governance Programme, Joe Mutah, Hassan noted that while the World Bank continues to provide soft and concessionary loans, the responsibility lies with Nigerian authorities to ensure long-term impact.

“Inasmuch as the Bank is a significant partner in this, they are gracious enough to give us soft loans, concessionary loans, but I think the onus is on us to make sure that at the end of the day, we see how we can sustain these programmes,” he said.

The HOPE Governance Programme is aimed at strengthening institutional systems in basic education and primary healthcare delivery, with a focus on improving service outcomes at the state level.

Hassan expressed concern over Nigeria’s historical difficulty in sustaining reforms after donor-supported programmes end, referencing earlier initiatives such as the State Fiscal Transparency, Accountability and Sustainability (SFTAS) programme.

He questioned whether lessons had been learned from past interventions, warning that failure to institutionalise reforms could lead to repeated policy breakdowns.

“What next? I think that question behoves us to look at ourselves in the mirror. What have we done after the precursor to this programme—SFTAS? Did we just receive the incentives and move on?” he asked.

He emphasised that the success of current reforms depends on whether state governments can convert financial assistance into lasting institutional improvements.

According to him, sustainable governance systems in education and healthcare are critical to improving service delivery and attracting future development partnerships.

The World Bank Task Team Lead for the programme, Ikechukwu Nweje, explained that the Programme-for-Results approach was designed to ensure that funding is tied to measurable outcomes rather than inputs.

He added that technical support would continue to be provided to states, while implementation units would be strengthened with expert consultants.

Hassan also commended the Enugu State Government for reforms in education and healthcare administration, describing its efforts as a positive example for other states.

Nigeria’s growing reliance on concessional financing from institutions like the World Bank has helped fund key reforms, but concerns remain about sustainability once programme funding ends.

The HOPE Governance Programme seeks to address this gap by linking financial support to performance indicators, particularly in critical sectors such as education and health, which are seen as essential for long-term development.

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