Nigeria’s borrowing from the World Bank is projected to reach $9.65 billion by the end of 2025. The government is accelerating development projects across key sectors to drive growth.
This figure includes loans from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). When grants are included, the total support over the three-year period (2023-2025) rises to approximately $9.77 billion.
The financing targets critical areas such as digital infrastructure, power, education, and health. These funds directly support the Bola Tinubu administration’s reform agenda.
Borrowing Trends (2023-2025)
- 2023: The borrowing cycle began with $2.7 billion in loans. The focus was on power sector recovery, renewable energy, and women’s empowerment. Key projects included a $750 million facility for renewable energy and a $700 million credit for girls’ secondary education.
- 2024: Loan approvals surged by 57.4% to $4.25 billion. A massive $1.5 billion package for economic stabilization drove this increase. Additionally, separate $500 million investments targeted rural roads, primary healthcare, and dam safety.
- 2025: Projections show $2.695 billion in loans alongside over $52 million in grants. Major allocations include $500 million each for broadband expansion, basic education, and livelihood support. Furthermore, a new $500 million facility for MSME finance is expected in December.
Debt Sustainability Concerns
Nigeria is currently the largest IDA borrower in Africa. By September 2025, the country’s exposure rose to $18.5 billion. While officials defend the concessional nature of these loans, economists serve a note of caution.
Dr. Aliyu Ilias, a development economist, questioned the necessity of this borrowing spree. He noted that government revenue has reportedly increased following the fuel subsidy removal. Consequently, he warned that high debt servicing costs are crowding out capital expenditure and fueling inflation.
Conversely, economist Dr. Muda Yusuf argued that deficit financing is standard practice. However, he stressed the importance of debt sustainability. He highlighted the risks associated with foreign loans due to exchange rate volatility.
A Dominant Partnership
Despite these concerns, the World Bank remains a dominant partner. It holds over 41% of Nigeria’s external debt.
Senator Abubakar Bagudu, Minister of Budget and Economic Planning, recently praised the institution’s support. He described the partnership as transformative for the country’s reforms. The World Bank has reiterated its commitment to backing Nigeria’s development. However, recent reports indicate delays in the disbursement of some previously approved loans.
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