Nigeria’s Debt to World Bank to Rise to $9.2bn Under Tinubu as FG Moves to Get 6 New Loans in 2025
- The Nigerian government is projected to secure an additional six loans from the World Bank in 2025
- So far, the Nigerian government has received about 10 loans under President Bola Tinubu from the World Bank
- The six new loans will bring Nigeria’s borrowing from the World Bank under Tinubu to $9.6 billion
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government is about to secure six new loans of about $2.23 billion from the World Bank in 2025 as the bank continues to support the country’s economic reforms.
According to data from the World Bank, the new borrowings will bring Nigeria’s total debt to the World Bank to $9.25 billion in three years, showing a continued dependence on external funding to support critical sectors of the economy.
Source: Getty Images
Breakdown of loan approvals in 2023
A breakdown of Nigeria’s loan approvals from the global financial institution since 2023 under President Bola Tinubu shows a rising increase in funding commitments.
In 2023, the World Bank granted $2.7 billion in loans to Nigeria, targeted at projects in renewable energy, women’s empowerment, education, and power.
Projects approved under the loan in 2023 include:
- Nigeria Distributed Access via Renewable Energy Scale-up Project at $750 million.
- Additional Financing for Adolescent Girls Initiative for Learning and Empowerment valued at $700m.
- $500m for Nigeria for Women Programme Scale-Up Project
- Nigeria – AF Power Sector Recovery Performance-Based Operation at $750m
- World Bank loans in 2024
- In 2024, the Nigerian government received about $4.32 billion in funding from the World Bank.
One of the largest borrowings in 2024 include:
- $1.5 billion for Nigeria Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing,
- NG Accelerating Resource Mobilisation Reforms Programme for Results at $750 million.
- Rural Access and Agricultural Marketing Project – Scale-Up at $500m.
- $570 million for the Healthcare Provision Strengthening Programme.
- $500 million for Nigeria Human Capital Opportunities for Prosperity and Equity – Governance initiative
- $500 million for Sustainable Power and Irrigation for Nigeria Project.
FG set to secure six new loans for 2025
The World Bank has approved 10 loans for President Bola Tinubu’s government.
Nigeria is seeking to secure six new loans from the World Bank valued at $2.23 billion.
The government reportedly plans to use the facility to cover critical infrastructure in digital infrastructure, healthcare, education, nutrition, and other areas.
The new projects planned for the prospective loan include:
- $500 million for Building Resilient Digital Infrastructure for Growth initiative
- $300 million for the Nigeria Health Security Programme
- $300 million for Solutions for Internally Displaced and Host Communities Project
- The bank will also renew the Accelerating Nutrition Result in Nigeria project to gulp $80 million.
- Another project is the $552 million HOPE for Quality Basic Education for All project
- $500 million for Nigeria Community Action for Resilience and Economic Stimulus Programme
New loans are scheduled for March and September
According to a Punch report, the negotiation process for the projects has advanced to various stages.
The report said board approvals are expected between March and September 2025, with two key projects scheduled for board approvals on March 31, 2025.
Source: Facebook
The final loan approval for this year is the Building Resilient Digital Infrastructure for Growth project, which the board has set for September 15, 2025.
Experts say the rising trend in loan approvals from the World Bank for Nigeria shows confidence in its ongoing reforms in critical areas such as fiscal policy, human capital development, and infrastructure growth.
They say the reason for the rising loans from global lenders is to get external funding to finance its development initiatives, focusing on closing infrastructural gaps and improving service delivery.
Nigeria depends on external borrowing to shore up its huge infrastructure deficit, which analysts say is slow compared to its burgeoning population.
Nigeria ranks high in IDA debt
According to reports, the consistent growth in the World Bank’s fiscal commitments to Nigeria from $2.7 billion to $4.23 billion in 2024 and the expected $2.23 billion in 2025, shows Nigeria’s dependence on concessional funding to boost structural reforms and public sector investments.
The borrowing trend also shows the government’s plans to leverage international aid to address challenges and implement critical reforms to achieve stability and growth.
Legit.ng earlier reported that Nigeria remained the third-largest debtor to the World Bank’s International Development Association (IDA).
The World Bank revealed in its latest financials for 2024 that Nigeria’s debt to the IDA dipped by $300 million in three months from $17.1 billion in September 2024.
Top 10 African Countries with Highest Debts to IMF
Meanwhile, Legit.ng previously reported that some African countries considerably reduced their debt exposure to the International Monetary Fund (IMF) since 2024.
However, others have continued to accumulate debts as they depend on global lenders like the IMF for financial aid.
Experts have said that excessive debt accumulation from global lenders could jeopardise a country’s fiscal and economic stability.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
