Nigeria’s debt to the World Bank has climbed further, rising by $2.08 billion within a year to reach $19.89 billion as of December 31, 2025, according to new data from the Debt Management Office (DMO).
The figure marks an 11.7% increase from the $17.81 billion recorded at the end of 2024, underscoring the country’s continued reliance on external borrowing to support public spending and development projects.
The World Bank exposure is made up of loans from two key arms: the International Development Association (IDA), which provides concessional funding to low-income countries, and the International Bank for Reconstruction and Development (IBRD), which lends to creditworthy developing economies.
A breakdown of the figures shows that IDA loans rose from $16.56 billion in 2024 to $18.51 billion in 2025, an increase of nearly $1.94 billion. IBRD exposure also grew, climbing from $1.24 billion to $1.38 billion over the same period.
Together, these increases mean the World Bank now accounts for about 38.36% of Nigeria’s total external debt stock, which stood at $51.86 billion at the end of 2025. Although still the country’s largest external creditor, its share of total debt dipped slightly compared to 2024, as other borrowing categories expanded more rapidly.
Overall, Nigeria’s external debt rose by $6.08 billion in one year, driven not just by multilateral loans but also by commercial borrowing and Eurobond obligations. Eurobond debt alone increased from $17.32 billion to $18.55 billion, while syndicated and project-related loans also saw notable growth.
Multilateral debt as a whole rose to $23.85 billion, while bilateral debt increased to $6.72 billion, reflecting a broad-based rise in external obligations.
Analysts say the trend highlights Nigeria’s continued dependence on concessional financing, particularly from institutions like the World Bank, amid fiscal constraints, rising debt servicing costs, and limited access to cheaper global capital.
Economists are divided on the implications. Some argue that concessional loans remain a practical option if they are directed toward productive projects that can stimulate growth and generate future revenue. Others warn that rising debt levels could worsen fiscal pressure if government revenue does not grow at the same pace.
A Lagos-based economist, Adewale Abimbola, noted that the key issue is not borrowing itself but how effectively the funds are used. He said well-structured loans tied to viable development projects can still support long-term economic growth.
However, development economist Dr Aliyu Ilias has raised concerns about Nigeria’s growing debt burden, questioning the sustainability of continued borrowing in a period where debt servicing is already consuming a large share of government revenue.
He warned that unless borrowing translates into improved infrastructure, productivity, and public services, the rising debt profile could become increasingly difficult to justify in the long run.
