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.
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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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