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| New funding aims to transform Nigeria’s procurement |
The SPESSE initiative began in 2021 with an $80 million loan approved in February 2020 . It targets sustainable capacity in procurement, environment, and social standards. SPESSE’s parent credit built a framework for clear rules and better oversight. The new credit keeps the original objective unchanged, as noted in the financing document .
The additional financing covers key zones of the parent project. It maintains the project’s development objective without change . Nigeria’s government will tap the funds to speed e-procurement rollout and scale training. The Bank confirmed the project status as “active” and at the “Bank Approved” stage .
SPESSE’s initial credit closes on June 30, 2026. The extra credit runs until June 30, 2029 . This phased approach prevents service gaps and ensures steady progress. It lets officials spread tasks over longer periods. Targets are tied to disbursement-linked indicators. These guards track real gains.
A top priority is nationwide e-GP platform use. The system will cut delays and plug leakages. It brings bids and orders online, saving time and cost. Government ministries will adopt a unified portal. That steps up transparency in public contracts. This tool can free billions in savings yearly .
Over 33,000 procurement staff already trained under SPESSE . The new funds will train another 25,000 officials. Courses will cover rules, ethics, and system use. Certification schemes will lift skills and credibility. This push helps meet rising demand for a skilled workforce in public contracting.
SPESSE embeds rules to protect nature and communities. New funds boost checks on waste, land use, and labour safeguards. Officials will learn to flag and manage risks early. That work reduces harm from small-scale construction or supply projects. It also improves stakeholder engagement across borders.
The project backs small and medium businesses, including women-led firms. By opening e-GP slots, SPESSE widens access to public tenders. Lower barriers let new suppliers compete fairly. That drives job growth and local content. Inclusive markets expand the tax base and cut poverty trends.
Reform in procurement ranks high on Nigeria’s reform list. Inefficient buying once cost billions and fed graft. SPESSE forms a key pillar in wider public sector reform. It joins tax and budget reforms under President Tinubu’s agenda. The goal is leaner, cleaner governance and better services.
Nigeria’s economy grew by 4.6% in Q4 2024, its strongest pace in a decade . But inflation hovers near 33%, eroding spending power. Nigeria’s GDP was $362.8 billion in 2023 . Rising debt and subsidy cuts test fiscal space. The SPESSE boost helps address inefficiency and makes funds work harder.
As of March 2025, Nigeria’s debt to the World Bank hit $18.23 billion . That sum rose from $17.81 billion in December 2024. World Bank loans now form 39.6% of Nigeria’s external debt. Total external debt reached $45.98 billion by March 2025 . This mix calls for strong value from each dollar borrowed.
Analysts say e-GP can cut procurement time by up to 40%. Transparent systems shrink room for bribery. Training boosts staff morale and cuts reliance on external agents. Clear rules help project teams meet targets faster. Yet success hinges on strong leadership and tech upkeep.
SPESSE faces hurdles. Nigeria’s power and internet gaps could slow e-GP use. Limited funds at sub-national levels may delay rollouts. Staff turnover demands repeated training. Political shifts might change reform drive. Careful oversight and stable budgets must back this work.
The extra $65 million gives SPESSE fresh momentum. It can yield big gains in saving and trust. At the same time, rising debt and delivery risks demand caution. Success will hinge on clear plans, firm leadership, and active monitoring. If done right, the gains will far exceed the cost.
As SPESSE enters its new phase, stakeholders must track progress. Parliament, civil groups, and media can hold agencies to account. The World Bank will review results at key milestones. Strong data and open reporting will drive course corrections. Together, they can build a system that endures.
The World Bank’s extra credit under SPESSE marks a big step in Nigeria’s reform journey. The boost brings new tools and more training. It also raises the bar on social and environmental safeguards. If leaders sustain focus, SPESSE can reshape procurement in Nigeria. That shift can boost trust, cut waste, and deliver better services to all citizens.