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HOPE Governance chief urges states to turn concessional loans into lasting institutions, not short-lived gains…..
The National Coordinator of the World Bank-backed HOPE Governance Programme, Assad Hassan, has issued a pointed warning to Nigerian authorities: reforms funded by concessional loans must outlive the funding itself or risk becoming yet another cycle of wasted opportunity.
Speaking in Enugu during a regional implementation mission convened by the World Bank, Hassan challenged both federal and state governments to rethink how they handle development financing. His message was clear, access to soft loans is not the real achievement; building systems that endure is.
The remarks were disclosed in a statement by the programme’s communications officer, Joe Mutah, following the South-East engagement.
Hassan acknowledged the critical role of concessional financing but stressed that responsibility ultimately lies with local institutions to ensure continuity.
While such loans provide breathing room for reforms, he warned that without deliberate efforts to institutionalise progress, Nigeria could once again fall into a familiar pattern, initial success followed by quiet decline once external support ends.
That concern is not theoretical. Hassan pointed to previous initiatives, including the State Fiscal Transparency, Accountability and Sustainability programme, questioning what became of the reforms after incentives were disbursed.
His challenge was blunt: did states build lasting systems, or simply cash in on short-term gains?
The HOPE Governance Programme is designed to strengthen systems in two critical sectors basic education and primary healthcare areas widely seen as foundational to Nigeria’s long-term development.
But Hassan made it clear that funding alone will not determine success. What matters is whether state governments can convert financial support into durable institutional frameworks that continue to deliver results long after the programme ends.
He also emphasized that ownership at the subnational level is key not just for sustainability, but for credibility in attracting future international partnerships.
The urgency of his message is underscored by Nigeria’s rising exposure to multilateral loans. As of late 2025, the country’s debt to the World Bank’s concessional arm, the International Development Association, climbed to $18.7 billion, an increase of over 11% within a year.
That places Nigeria among the largest borrowers in the IDA portfolio, heightening pressure to ensure that borrowed funds translate into measurable, lasting impact.
Also speaking at the event, Ikechukwu Nweje explained that the programme adopts a results-based financing model. Under this approach, disbursements are tied directly to performance indicators rather than promises.
The goal, he said, is to strengthen institutional capacity particularly within state workforces so reforms can be sustained independently over time.
Technical support will continue from the World Bank, alongside additional implementation assistance coordinated at the national level.
Hassan used the opportunity to commend the Enugu State Government for strides made in education and healthcare reforms, signaling what is possible when policies are backed by execution.
The session itself was opened by Chidiebere Onyia on behalf of Governor Peter Mbah, bringing together officials from across the South-East to assess progress and share lessons.
Nigeria’s reliance on concessional loans has long been a double-edged sword. While they provide critical funding for reforms, the country has struggled to maintain momentum once programmes conclude.
The HOPE initiative represents a renewed attempt to break that cycle by tying money to measurable outcomes and pushing governments to take full ownership of reforms.
Hassan’s warning cuts to the core of the issue: without strong institutions and sustained political will, even well-funded programmes risk fading into the background.
And for a country balancing rising debt with urgent development needs, that is a risk it can no longer afford to ignore.
