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Nigeria is set to receive six new loans from the World Bank totaling $2.23 billion in 2025, bringing the country’s total approved loans to $9.25 billion over three years. This funding will support critical sectors such as infrastructure, healthcare, education, and economic resilience.

In 2023, the World Bank approved loans amounting to $2.7 billion, targeting projects in renewable energy, women’s empowerment, education, and the power sector. Notable projects included the Nigeria Distributed Access through Renewable Energy Scale-up Project, which received $750 million, and the Additional Financing for Adolescent Girls Initiative for Learning and Empowerment, valued at $700 million.

The funding approvals in 2024 surpassed those of the previous year, with a total of $4.32 billion allocated to various projects. This increase was largely due to Nigeria’s growing need for financial assistance to stabilize the economy amid mounting fiscal pressures and rising public debt.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized that President Tinubu remains focused on strengthening Nigeria’s economic foundation, reducing dependency on external borrowing, and ensuring long-term, private-sector-led development. “Edun emphasized that President Tinubu remains focused on strengthening Nigeria’s economic foundation, reducing dependency on external borrowing, and ensuring long-term, private-sector-led development.

The Director-General of the Debt Management Office, Ms. Patience Oniha, lauded the World Bank for its unwavering support to Nigeria. “I would like to acknowledge the World Bank and commend them for their support to Nigeria in various forms,” Oniha stated. She highlighted the multifaceted assistance provided by the international financial institution, including concessional and semi-concessional funding, capacity building, and technical assistance.

The planned loans for 2025 cover key sectors such as digital infrastructure, healthcare, education, nutrition, and community resilience. Projects in the pipeline include the Building Resilient Digital Infrastructure for Growth initiative, the Nigeria Health Security Programme, and the Solutions for Internally Displaced and Host Communities Project.

The negotiation process for these projects is currently at various stages, ranging from concept reviews to decision meetings. Board approvals are expected to take place between March and September 2025. The planned loans for 2025 cover key sectors such as digital infrastructure, healthcare, education, nutrition, and community resilience. Projects in the pipeline include the Building Resilient Digital Infrastructure for Growth initiative, the Nigeria Health Security Programme, and the Solutions for Internally Displaced and Host Communities Project.

The negotiation process for these projects is currently at various stages, ranging from concept reviews to decision meetings. Board approvals are expected to take place between March and September 2025.

Among the projects, the Accelerating Nutrition Results in Nigeria 2.0 initiative and the HOPE for Quality Basic Education for All project are scheduled for board approval on March 31, 2025. The Community Action for Resilience and Economic Stimulus Programme is slated for approval on March 17, 2025.

Later in the year, the Solutions for Internally Displaced and Host Communities Project is expected to receive board approval on July 15, 2025. The Nigeria Health Security Programme, which aims to enhance regional collaboration and strengthen health system capacities to respond to emergencies, is due for board approval on August 19, 2025.

The final loan approval scheduled for 2025 is the Building Resilient Digital Infrastructure for Growth project, with board approval set for September 15, 2025.

The rising trend in World Bank loan approvals for Nigeria affirms the international lender’s confidence in the country’s reform agenda, particularly in key areas such as fiscal policy, human capital development, and infrastructure improvement.

The Nigerian government has, in recent years, intensified efforts to secure foreign loans to finance its development initiatives, with a focus on closing infrastructural gaps, improving service delivery, and fostering economic stability.

While external funding remains a vital component of the government’s financial strategy, concerns about Nigeria’s rising debt profile continue to be a subject of debate among economic analysts.

The consistent growth in the World Bank’s financial commitments to Nigeria, from $2.7 billion in 2023 to $4.32 billion in 2024, and the anticipated $2.23 billion in 2025, highlights the country’s increasing dependence on concessional financing to drive structural reforms and public sector investments.

This funding trajectory reflects the government’s strategy to leverage international support in addressing economic challenges and implementing key reforms aimed at achieving long-term stability and growth.

Nigeria has retained its position as the third-largest debtor to the World Bank’s International Development Association, despite its exposure dropping to $16.8 billion as of December 31, 2024.

According to the World Bank’s latest financial statements for the fiscal year up to December 2024, Nigeria’s debt to the IDA dropped by $300 million in three months from $17.1 billion recorded in September 2024.

However, the current amount is still higher than the $16.5 billion recorded in June 2024.

According to data from the external debt report released by the Debt Management Office, the World Bank’s share of Nigeria’s debt totals $17.32 billion, with the majority owed to the International Development Association, which accounts for $16.84 billion, representing 39.14 per cent of Nigeria’s total external debt.

The International Bank for Reconstruction and Development, another arm of the World Bank, is owed $485.08 million, or 1.13 per cent.

Federal Government spent $3.58 billion servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56 billion spent during the same period in 2023.

This was according to data from the Central Bank of Nigeria on international payment statistics.

The significant rise in external debt service payments shows the mounting pressure on Nigeria’s fiscal balance amid ongoing economic challenges.

In an earlier statement, the Federal Government reaffirmed its commitment to reducing reliance on external debt financing and driving economic independence through strategic partnerships with the World Bank.

“I would like to acknowledge the World Bank and commend them for their support to Nigeria in various forms,” said the Director-General of the Debt Management Office, Ms. Patience Oniha.

She highlighted the multifaceted assistance provided by the international financial institution, including concessional and semi-concessional funding, capacity building, and technical assistance.

“The World Bank is one development partner that I can call and say we have a need in this area, and they’ve been here with us,” Oniha remarked, highlighting the bank’s responsiveness to Nigeria’s developmental needs.

She further expressed that the collaboration with the World Bank has yielded substantial benefits, particularly in strengthening the DMO’s institutional capacity.

“At the DMO, we’re still a growing and learning institution. So, they help us do our work better and also support the work that we do with you, the States,” Oniha added, acknowledging the positive impact of the partnership on both federal and state-level operations.

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