Nigeria’s loans from the World Bank will total $9.65 billion by the end of 2025, spanning three years from 2023 under President Bola Tinubu’s administration. This figure covers only International Bank for Reconstruction and Development and International Development Association commitments, with grants pushing the overall support to about $9.77 billion. The funds target key areas like digital infrastructure, social protection, power, education, and health to bolster economic stability.
Borrowing kicked off in 2023 with $2.7 billion across four major projects. These included $750 million for renewable energy access, $700 million for girls’ secondary education, $500 million for women’s economic empowerment, and $750 million for power sector recovery. No grants featured that year, focusing entirely on loans to drive immediate reforms.
Approvals surged to $4.25 billion in 2024, marking a 57.4 per cent rise from the previous year. Highlights encompassed $1.5 billion for economic stabilisation reforms, $750 million for resource mobilisation, and $500 million each for rural roads, primary healthcare, and irrigation safety. Grants added $70 million, lifting total support to roughly $4.32 billion amid efforts to expand fiscal space.
For 2025, commitments stand at $2.695 billion in loans plus $52.18 million in grants across nine operations. Priorities include $500 million each for broadband expansion, basic education, and aid to vulnerable households, alongside $730 million for health and displaced communities. This level mirrors 2023’s amount after a dip from 2024, with an extra $500 million facility due on December 19 for small business finance.
Nigeria now holds Africa’s largest stock of International Development Association loans at $18.5 billion, ranking third globally as of September 2025. This exposure grew 8.2 per cent from $17.1 billion a year earlier, forming 41.3 per cent of the nation’s $46.98 billion external debt. The rise underscores heavy reliance on concessional financing to offset oil revenue swings and fund infrastructure.
Economists weigh both upsides and pitfalls of the borrowing spree. Adewale Abimbola, a Lagos-based expert, argued that concessional terms with low rates and long repayment periods make the debt manageable if tied to revenue-boosting projects. “Borrowing isn’t bad; what matters is utilisation,” he said, urging focus on growth-generating investments.
Dr Aliyu Ilias, a development economist, voiced deeper concerns over the pace of new debt despite revenue gains from subsidy cuts. He pointed to strains like slashed capital spending, soaring inflation, and a weakened naira hitting historic lows. The administration, he added, should have leaned less on loans in its early years to avoid curbing public services and job growth.
Dr Muda Yusuf, another economist, framed the loans as standard deficit financing for priorities under Nigeria’s medium-term plans. He stressed the need for strong revenue streams to service them, warning against foreign debt’s exchange rate risks that drain reserves. Domestic borrowing, he suggested, offers a safer path if projects truly enhance repayment power.
Budget Minister Abubakar Bagudu hailed the World Bank’s role in backing Tinubu’s vision for a $1 trillion economy by 2030. He praised the partnership as seamless, crediting it for breakthroughs in tough times. “We could not have achieved the results we have today without your support,” Bagudu told the Bank’s team.
World Bank Country Director Matthew Verghis lauded Nigeria’s reform choices in August 2025 as a pivotal shift. “Such choices are not easy, but they create opportunities for a new path,” he noted, pledging full backing for lasting impact. Yet challenges linger, with $2 billion from six 2024 approvals still undisbursed after nearly a year due to phased rollout conditions.
