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Nigeria and World Bank Launch $500M Pay-for-Performance Deal

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HOPE-GOV Programme

Nigeria’s push to fix its crumbling primary healthcare and basic education systems just received a half-billion-dollar injection. On Tuesday, the Federal Government officially activated the $500 million HOPE-GOV Programme in Abuja.

Supported by the World Bank, this initiative aims to plug critical governance gaps that plague public services. However, this is not a traditional grant.

Performance-Based Funding Model

The initiative operates on a strict “results first” basis. Under this model, the 36 states and the FCT must invest their own resources to achieve specific milestones before receiving any federal payout.

Assad Hassan, the National Coordinator, explained that the HOPE-GOV Programme is designed to reward verified outcomes rather than mere promises.

Consequently, the $500 million credit is split into two distinct segments to ensure efficiency:

  • $480 Million (Programme-for-Results): This massive chunk serves as the reward pool. It reimburses states that meet concrete targets in health and education.

  • $20 Million (Investment Project Financing): This smaller allocation funds the technical side. It covers monitoring, evaluation, and the independent verification needed to audit state results.

Once states receive these incentive payments, they are expected to reinvest the cash to drive further reforms.

Targeting the Root Causes

This financial intervention addresses a chronic crisis. Nigeria currently battles high numbers of out-of-school children and poorly staffed clinics.

While funds often exist, poor planning and lack of transparency at the state level have historically blocked access to them. This project aims to dismantle those barriers permanently.

To achieve this, the program focuses on three core pillars:

  • Staffing Solutions: Recruiting and retaining teachers and health workers to fix understaffing.

  • Better Accountability: Enforcing strict financial management, timely audits, and budget transparency.

  • Expanded Financing: Increasing funding flows to primary schools and clinics, in collaboration with agencies like the Universal Basic Education Commission (UBEC).

Timeline and Implementation

The road to this launch has been extensive. The World Bank first approved the plan in September 2024, followed by the Federal Executive Council in February 2025.

Now, as of December 2025, implementation is officially underway. Deborah Odoh, Permanent Secretary of the Ministry of Budget and Economic Planning, pledged full cooperation, noting that the project is vital for citizens relying on basic services.

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