Nigeria’s debt to the World Bank is projected to rise to $9.2 billion (₦13.7 trillion) as the federal government, under President Bola Ahmed Tinubu, plans to secure six new loans totaling $2.23 billion (₦3.34 trillion) in 2025.
This move reflects an increasing reliance on multilateral funding to support critical sectors such as infrastructure, healthcare, education, and economic development.
Rising Loan Approvals Under Tinubu’s Administration
An analysis of World Bank loan approvals since 2023 under President Tinubu’s government reveals significant increases in funding commitments.
- In 2023, Nigeria secured $2.7 billion in loans for projects focused on renewable energy, women’s empowerment, education, and power sector reforms.
- In 2024, this figure rose to $4.32 billion, driven by economic stabilization efforts and the need to address fiscal pressures.
Key projects funded in the past two years include:
- $750 million for renewable energy expansion.
- $700 million for adolescent girls’ education.
- $500 million for women’s economic empowerment.
- $1.5 billion for economic stabilization reforms.
- $750 million for non-oil revenue mobilization.
Planned Loans for 2025
The federal government is currently negotiating six new World Bank loans, focusing on digital infrastructure, healthcare, education, nutrition, and community resilience.
Key projects expected to be approved include:
- $500 million for expanding broadband internet access.
- $300 million for health security and emergency preparedness.
- $300 million for internally displaced persons and host communities.
- $80 million for nutrition programs targeting women and children.
- $552 million for improving basic education.
- $500 million for economic stimulus and poverty alleviation.
Several of these projects are at different approval stages, with final decisions expected between March and September 2025.
Implications of Rising Debt
Nigeria’s increasing reliance on World Bank loans raises concerns about long-term debt sustainability, given the country’s existing fiscal pressures and revenue challenges. However, the government argues that these funds are crucial for economic development and improving social services.
With board approvals set to begin in March, stakeholders will closely watch how these loans impact Nigeria’s economic trajectory.
