Nigeria’s World Bank Debt Hits $9.65 Billion in 2025 – Latest Official Numbers

Nigeria's projected borrowing from the World Bank will hit $9.65 billion between 2023 and 2025. This figure covers new loan approvals across three years under President Bola Tinubu's administration.

The $9.65 billion represents fresh loans approved and projected for the three-year period. This is different from Nigeria's total outstanding World Bank debt, which stands higher.

Breaking Down the $9.65 Billion World Bank Loans

The loan commitments are spread across 2023 ($2.7 billion), 2024 ($4.25 billion), and 2025 ($2.695 billion). When grants are included, total support rises to approximately $9.77 billion.

2023 World Bank Loans to Nigeria

In 2023, Nigeria secured $2.7 billion in World Bank financing. The funds targeted critical sectors including power sector recovery, renewable energy expansion, girls' education, and women's empowerment.

Major projects included:

• $750 million for renewable energy expansion
• $700 million for girls' secondary education
• $500 million for women's economic empowerment
• $750 million for power sector recovery

2024 World Bank Loans to Nigeria

The loan volume increased sharply in 2024 to $4.25 billion. This represented a 57.4 percent increase compared to 2023.

Key approvals included:

• $1.5 billion for economic stabilization reforms
• $750 million for resource mobilization reforms
• $500 million each for rural roads, primary healthcare, and irrigation projects
• Additional funding for social protection programs

2025 World Bank Loans to Nigeria

For 2025, the projected pipeline includes $2.695 billion in loans and $52.18 million in grants.

Priority areas for 2025 funding:

• Digital broadband expansion
• Basic education programs
• Livelihood support for vulnerable households
• Health security and nutrition

What Are IDA and IBRD Loans?

Nigeria's World Bank borrowing comes from two main arms: the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).

IDA loans are concessional, meaning they have low or zero interest rates and long repayment periods. They are aimed at the poorest countries. IBRD loans are non-concessional, with market-based interest rates, and are targeted at middle-income countries.

Nigeria's Total Outstanding World Bank Debt

While the $9.65 billion covers new approvals for 2023-2025, Nigeria's total debt to the World Bank is much higher.

As of December 2024, Nigeria's total debt to the World Bank stood at $17.81 billion. This includes $16.56 billion owed to IDA and $1.24 billion to IBRD.

By September 2025, Nigeria's IDA exposure reached $18.5 billion, making it the largest IDA borrower in Africa and third-largest globally.

How Nigeria Ranks Among World Bank Debtors

Nigeria holds a significant position among World Bank borrowers:

• Largest IDA borrower in Africa
• Third-largest IDA borrower globally (behind Bangladesh and Pakistan)
• World Bank loans represent 41.3% of Nigeria's total external debt

This ranking highlights Nigeria's heavy reliance on concessional financing for development projects.

Economic Impact of World Bank Loans

The rising loan portfolio has sparked debate among Nigerian economists.

Supporters argue multilateral loans are concessional and necessary for development when used effectively in revenue-generating projects.

Critics question the need for large-scale borrowing given government claims of revenue surpluses following economic reforms.

The key concern centers on debt sustainability and whether borrowed funds generate sufficient economic returns.

Debt Service Costs Rising

Nigeria's debt servicing costs continue to climb. In 2024, Nigeria spent $2.32 billion servicing World Bank and IMF debt, up from $998.92 million in 2023.

The World Bank received over $663 million in 2024, comprising principal repayments and interest payments.

Loan Disbursement Process

Not all approved loans are disbursed immediately. Six loans worth approximately $2 billion approved in 2024 remained undisbursed nearly a year later. World Bank officials explain that funds are released in installments based on project milestones, not as lump sums.

Disbursement depends on the financing instrument and achievement of specific performance targets.

Future Borrowing Plans

Beyond the $9.65 billion for 2023-2025, Nigeria continues to seek additional financing.

The government has proposed a $24 billion external borrowing plan for 2025-2026, though this faces parliamentary scrutiny given growing debt concerns.

Is $9.65 Billion Debt Sustainable?

World Bank debt is 8.4% of Nigeria’s total external debt of $44.2 billion. Debt service to revenue ratio for World Bank loans remains under 1%. Experts rate this portion as low risk.

Additional World Bank approvals remain possible as Nigeria continues implementing economic reforms.

The $9.65 billion in new World Bank loans represents both opportunity and risk for Nigeria's economic future. Success depends on prudent management, transparent execution, and ensuring borrowed funds generate returns that justify the debt burden.