Nigeria’s borrowing from the World Bank between 2023 and 2025 is projected to reach $9.65bn by the end of this year, according to fresh data.
When grants are added, total support rises to about $9.77bn, underscoring the scale of multilateral financing underpinning the country’s reform programme.
The loans cover facilities from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
The IBRD provides near‑commercial loans to middle‑income countries, while the IDA offers highly concessional loans and grants to the poorest nations.
The Tinubu administration began its borrowing cycle in 2023 with $2.7bn across four major projects. These included $750m for renewable energy access, $700m for girls’ education, $500m for women’s empowerment, and $750m combined for power sector recovery.
In 2024, approvals surged to $4.25bn — a 57.4% increase. The largest was the $1.5bn Nigeria Reforms for Economic Stabilisation programme, split evenly between IBRD and IDA. Another $750m IBRD loan targeted resource mobilisation, while three separate $500m IDA packages supported rural roads, primary healthcare, and dam safety.
For 2025, $2.695bn in loans and $52.18m in grants are in the pipeline. The largest facilities include $500m each for broadband expansion, basic education, and livelihood support.
Health security, nutrition, and displaced communities account for $630m, while procurement standards receive $65m.
Nigeria’s Position in Global Lending
Nigeria’s IDA loan stock rose to $18.5bn in September 2025, making it Africa’s largest IDA borrower and the third‑biggest globally, behind Bangladesh and Pakistan. The country overtook India in 2024 to reach this ranking.
Data from the Debt Management Office shows Nigeria’s external debt at $46.98bn as of June 30, 2025, with the World Bank holding 41.3% of the total.
Lagos‑based economist Adewale Abimbola said: “If it’s concessionary and tied to viable projects with medium‑term revenue prospects, I don’t think it’s a bad idea. Borrowing isn’t bad; what matters is utilisation.”
But Dr Aliyu Ilias of CSA Advisory warned that rising debt is crowding out public service delivery. He argued that despite revenue surpluses declared by the Federal Inland Revenue Service and Customs after subsidy removal, the government continues to borrow heavily.
“Debt servicing now consumes a significant portion of available revenue, limiting job creation and worsening Nigeria’s foreign‑exchange imbalance,” he said.
Dr Muda Yusuf of the Centre for the Promotion of Private Enterprise added: “Deficit financing is common worldwide, but borrowing must be backed by sound priorities. Debt sustainability depends on revenue capacity to service obligations.”
Nigeria’s reliance on concessional loans has both opportunity and risk. While the funds support investments in power, education, health, and digital infrastructure, economists warn of fiscal vulnerability if domestic revenue mobilisation lags.
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