The Federal Government of Nigeria has borrowed $6.45 billion from the World Bank since President Bola Tinubu took office just 16 months ago.
This figure is set to rise following the recent approval of three loans totaling $1.57 billion for various projects across the country.
The World Bank has approved a staggering 36 loan requests to Nigeria, amounting to $24.088 billion in the last five years.
These funds are earmarked for critical development projects, including power infrastructure, women’s empowerment, and education reforms.
However, this trend of escalating debt has raised alarm among Nigerians, many of whom question the sustainability of such financial commitments.
Nigerians have expressed frustration over the long-standing issues of infrastructure decay and rising unemployment, linking these concerns to the government’s ongoing borrowing strategy.
While some acknowledge the need for resources to support a growing population, they contend that previous loans have not produced visible improvements.
The World Bank’s analysis reveals a steady increase in loan approvals to Nigeria since 2020.
Notably, the government secured $6.36 billion through 15 loan requests in 2020, with a gradual decline to $1.26 billion in 2022, before rising again to $2.7 billion in 2023.
With 2024 already seeing approvals totaling $3.82 billion, the World Bank’s latest loans aim to bolster human capital through improved healthcare for women and children and address governance issues in education delivery.
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As Nigeria grapples with soaring debt servicing costs—N6.04 trillion in the first half of 2024, up 68.8% from the previous year—the economic implications of this borrowing spree are becoming increasingly concerning.
The Debt Management Office reports that Nigeria owes the World Bank $15.59 billion as of March 2024, raising urgent questions about the government’s long-term financial strategy.
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