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World Bank commitments to Nigeria from 2023–2025 to total $9.65bn, plus $122m grants.
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2024 saw the highest approvals at $4.25bn, driven by major reform-linked operations.
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Economists warn rising debt must match revenue capacity and project impact.
Nigeria’s loans from the World Bank between 2023 and 2025 are projected to hit $9.65bn by the end of 2025, as the Federal Government accelerates engagements on infrastructure, reforms, and social protection programmes. When grants are included, total support rises to $9.77bn within the three-year period.
The figure comprises funding from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD). Both institutions have become central to Nigeria’s reform financing amid fluctuating revenues and debt sustainability concerns.
Steady Rise in Commitments
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In 2023, Nigeria secured $2.7bn in loans, largely channelled into power sector recovery, renewable energy expansion, girls’ education, and women’s empowerment. Key approvals included $750m for clean energy access, $700m for girls’ secondary education, and $500m for the Nigeria for Women programme.
Loan volume increased sharply in 2024, rising to $4.25bn, a 57.4 per cent jump from the previous year. The surge was driven by two large policy-based operations — $1.5bn for economic stabilisation reforms and $750m for revenue mobilisation — alongside three separate IDA programmes for rural roads, primary healthcare, and dam safety. Grants for the year totalled $70m.
For 2025, available data shows $2.695bn in loans under preparation and $52.18m in grants across health security, broadband expansion, education, digital finance, and social protection. The largest allocations include $500m IDA each for broadband rollout, basic education, and livelihood support for vulnerable households.
The Development Bank of Nigeria is expected to implement a new $500m inclusive finance facility for MSMEs, scheduled for board consideration on December 19.
Nigeria Remains Top IDA Borrower
Nigeria’s reliance on concessional finance has solidified its global ranking. IDA’s financial report for Q3 2025 shows Nigeria remains the third-largest IDA borrower worldwide, with exposure rising from $17.1bn in September 2024 to $18.5bn in September 2025.
Overall external debt stood at $46.98bn as of June 2025, with World Bank loans accounting for 41.3 per cent of the total, according to the Debt Management Office.
Economists Raise Sustainability Concerns
Economists interviewed said the expanding World Bank pipeline could support long-term development but warned that rising commitments must align with Nigeria’s revenue capacity.
Lagos-based economist Adewale Abimbola noted that most facilities are concessional, arguing that the critical question is effective utilisation. “Borrowing isn’t bad; the issue is whether the loans fund projects capable of producing returns,” he said.
Development economist Dr. Aliyu Ilias questioned the pace of borrowing despite government claims of improved revenue from subsidy removal and higher collections by the FIRS and Customs. He warned that heavy debt servicing is crowding out capital expenditure and worsening inflation and exchange-rate pressures.
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CEO of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, said borrowing remains part of Nigeria’s medium-term fiscal framework but must be tied to clear development outcomes. He cautioned that foreign loans increase exchange-rate risk, stressing the need for stronger revenue to avoid a cycle of borrowing to service existing debt.
Disbursement Delays Persist
Despite the surge in approvals, some World Bank loans remain undisbursed. About $2bn in facilities approved for Nigeria in 2024 had yet to be released by September 2025.
The World Bank said disbursements are tied to agreed milestones and financing instruments, and not released as lump-sum payments.
World Bank, FG Reaffirm Partnership
Budget and Economic Planning Minister Abubakar Bagudu recently urged the Bank to support the Renewed Hope Ward Development Programme, which he described as central to President Bola Tinubu’s $1tn-economy target.
World Bank Country Director, Matthew Verghis, commended Nigeria for what he called “difficult but necessary” policy decisions, pledging continued support for reforms.
