The World Bank has officially approved an additional $65 million credit for Nigeria’s Sustainable Procurement, Environmental, and Social Standards Enhancement (SPESSE) project. This new approval brings total funding for the initiative to $145 million. Notably, the approval came on June 24, 2025—six days earlier than the previously scheduled June 30 date—demonstrating the urgency and commitment to fast-track Nigeria’s institutional reform efforts.
Project Status Now Active with Extended Timeline
Originally launched in 2021, the SPESSE project began with an $80 million loan approved in February 2020. Its goal has remained consistent: to build lasting institutional capacity for managing procurement, environmental, and social standards across Nigeria’s public and private sectors. Now that the additional financing has reached “Bank Approved” status, the project is officially active and set for expansion.
While the original SPESSE credit will close on June 30, 2026, the new funds will remain in use until June 30, 2029. This extended implementation window ensures that Nigeria has more time to deepen reforms, increase project impact, and build resilient public institutions.
Nationwide Rollout of Electronic Government Procurement (e-GP)
A key component of the additional funding involves the full rollout of Nigeria’s Electronic Government Procurement (e-GP) platform. With this digital system, the government aims to transform procurement processes by automating operations, minimizing corruption risks, and improving transparency in public spending.
Moreover, the e-GP platform will reduce bureaucratic delays and introduce real-time contract tracking. As a result, ministries, departments, and agencies will be able to manage procurement activities more efficiently, with better oversight and accountability. By creating a clear digital trail, the platform will also foster public trust in how the government manages funds.
Over 25,000 More Officers to Receive Professional Training
In addition to digitizing procurement, the SPESSE project will significantly expand human capital development across the country. While more than 33,000 public officers have already completed training under the initial project phase, the government plans to train at least 25,000 additional officers.
Through this new phase, the project will support the development of training curricula, certification programmes, and exam systems. Furthermore, training will be delivered via designated centers of excellence in partnership with universities and training institutions. By professionalizing the procurement workforce, the government will ensure that officials possess the technical knowledge and ethical standards needed for effective service delivery.
World Bank Debt to Nigeria Continues to Rise
While the additional $65 million in financing strengthens Nigeria’s reform capacity, it also adds to the country’s rising external debt. As of March 2025, Nigeria owed the World Bank a total of $18.23 billion—up from $17.81 billion in December 2024 and $15.45 billion in March 2024.
According to the Debt Management Office (DMO), $16.99 billion of this total is owed to the International Development Association (IDA), and $1.24 billion to the International Bank for Reconstruction and Development (IBRD). These loans now account for 39.6% of Nigeria’s total external debt of $45.98 billion, up from 38.9% at the end of 2024 and 36.4% in March 2024.
Despite this rising debt profile, World Bank loans offer favorable terms. Nevertheless, Nigeria must ensure that the borrowed funds deliver measurable impact, economic returns, and long-term public value.
SPESSE Remains a Cornerstone of Institutional Reform
Although concerns about debt sustainability persist, the SPESSE project remains a flagship reform initiative in Nigeria. In fact, it is one of the few projects that holistically addresses systemic inefficiencies by combining technology with human capital development.
Because of its integrated design, SPESSE supports not just procurement modernization, but also environmental safeguards and social accountability. By linking these critical sectors, the project will help Nigeria align with international standards, reduce waste, and create a more transparent, rules-based public administration.
Additionally, the project promotes cross-sector coordination and will likely influence how future reforms are designed and implemented.
Reforms Must Be Matched with Execution and Oversight
Although the additional financing and project timeline offer greater opportunities for impact, the ultimate success of SPESSE depends on disciplined implementation and strong oversight. Government agencies must monitor outcomes, enforce compliance, and report progress transparently.
To ensure this, the World Bank and Nigerian authorities have agreed to scale up monitoring and evaluation mechanisms. These will help measure key performance indicators such as time savings, cost reductions, and service delivery improvements across the procurement ecosystem.
Furthermore, Nigeria must engage all stakeholders—including civil society, academia, and the private sector—to support the reform process and maintain accountability.
Conclusion: A Pivotal Moment for Nigeria’s Public Sector Transformation
The World Bank’s approval of an additional $65 million for the SPESSE project signals a pivotal moment for Nigeria. With this funding, the country now has the tools to modernize public procurement, professionalize the workforce, and strengthen institutions.
At the same time, the government must act swiftly and strategically. Every dollar must be spent to produce measurable results. Every officer trained must contribute meaningfully to institutional improvement. Every reform introduced must be monitored for success.
Ultimately, SPESSE gives Nigeria an opportunity to reimagine how its public sector functions. If managed effectively, the project will not only boost efficiency and transparency but also create a stronger foundation for economic growth, investor confidence, and sustainable development.
