Nigeria’s total World Bank loans between 2023 and 2025 are on track to hit $9.65bn by December, reflecting an aggressive borrowing cycle under the Bola Tinubu administration as the government pursues large-scale reforms across key sectors.
An analysis of records on the World Bank’s website by The PUNCH shows that when grants are included, total assistance to Nigeria climbs slightly higher to $9.77bn in the three-year period. The loans come through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), institutions that lend on concessional and semi-commercial terms.
Three-Year Build-Up in Lending
The borrowing trajectory has steadily expanded, with authorities targeting digital infrastructure, education, power, health, agriculture, and financial inclusion. The Federal Government is also due to receive another $500m facility for MSME financing on December 19, 2025, through the Development Bank of Nigeria.
In 2023, Nigeria secured $2.7bn across four major projects, driven largely by renewable energy expansion, girls’ education, women’s empowerment, and power sector reforms. The year saw:
$750m IDA for renewable energy scale-up
$700m IDA for girls’ education
$500m IDA for women’s economic empowerment
$449m IBRD + $301m IDA for power sector recovery
Loan Growth Accelerates in 2024
Lending spiked sharply in 2024 to $4.25bn, a 57.4 per cent rise from the previous year. The boost was driven by two major policy operations and several $500m financing packages for rural roads, primary healthcare, and dam safety.
Key highlights for 2024 include:
$1.5bn for economic stabilisation and protection of vulnerable households
$750m for revenue mobilisation and oil/gas safeguards
$500m each for rural roads, primary healthcare, and dam/irrigation upgrades
$70m grant included in the health package
2025 Pipeline Nears $2.7bn
So far, Nigeria’s 2025 pipeline shows $2.695bn in loans and $52.18m in grants, covering broadband expansion, basic education, social protection, and health security.
Major components include:
$500m IDA each for broadband access, basic education, and livelihood support
$400m IBRD + $100m IDA for MSME financing
$630m for nutrition, IDP support, and health security
$65m IDA for procurement reforms
$6.8m grant to strengthen CBN’s oversight of financial technology operations
The 2025 loan volume represents a 36.6 per cent drop from 2024 but aligns closely with the 2023 approvals.
Nigeria Now Third-Largest IDA Borrower Globally
World Bank data confirms Nigeria’s rise as Africa’s largest IDA borrower and the third-largest worldwide, behind only two nations. The country’s IDA exposure grew from $17.1bn to $18.5bn between September 2024 and September 2025 — an 8.2 per cent increase.
The World Bank Group now accounts for 41.3 per cent of Nigeria’s total external debt of $46.98bn as of June 30, 2025.
Economists Raise Red Flags
Experts warn that while World Bank loans are concessional, Nigeria’s increasing reliance on them could fuel fiscal pressures if domestic revenue remains weak.
Economist Adewale Abimbola argued that concessional financing is not the problem, stressing that proper utilisation is crucial. “Borrowing isn’t bad; what matters is whether the funds are tied to viable projects with clear economic returns,” he said.
Development economist, Dr Aliyu Ilias, strongly disagreed with the government’s approach, questioning the need for additional borrowing despite reported revenue surpluses after subsidy removal.
He warned of a “crowding-out effect” on essential services, rising inflation, and deeper forex instability as debt servicing consumes more of government income.
Another economist, Dr Muda Yusuf, said the loans must be viewed within Nigeria’s broader fiscal framework, but cautioned that debt sustainability hinges on revenue capacity, not ambition. Excessive foreign borrowing, he added, could worsen exchange-rate pressures.
Government Defends Borrowing Strategy
The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, recently appealed to the World Bank to support the Renewed Hope Ward Development Programme, insisting the institution has been instrumental to Nigeria’s reform success.
World Bank Country Director, Matthew Verghis, praised Nigeria’s recent policy choices as “difficult but necessary,” and reiterated the bank’s commitment to support ongoing reforms.
Slow Disbursement Still a Challenge
Despite the growing loan portfolio, at least six loans worth $2bn approved in 2024 have yet to be disbursed, raising concerns about bureaucratic delays. The World Bank confirmed that disbursements occur in phases and require milestones before funds are released.
The Bank’s Senior External Affairs Officer, Mansir Nasir, noted that projects must meet all agreed conditions before money begins to flow.
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