World Bank: FG Eyes Six Loans as Nigeria’s Debt Hit $9.2bn
The Federal Government is set to secure six new loans totalling $2.23bn from the World Bank in 2025 as the international financial institution continues to support the country’s economic and structural reforms.
Data from the World Bank’s official website indicates that this will bring Nigeria’s total approved loans to $9.25bn over three years, reflecting a growing reliance on multilateral funding to support critical sectors of the economy, including infrastructure, healthcare, education, and economic resilience.
An analysis of Nigeria’s loan approvals from the World Bank since 2023 under the administration of President Bola Tinubu shows a significant increase in funding commitments.
In 2023, the World Bank approved loans amounting to $2.7bn, which primarily targeted projects in renewable energy, women’s empowerment, education, and the power sector.
Among the projects approved that year was the Nigeria Distributed Access through Renewable Energy Scale-up Project, which received $750m to expand private sector-led access to reliable electricity services for households, public institutions, and commercial customers.
Another notable loan approved in 2023 was the Additional Financing for Adolescent Girls Initiative for Learning and Empowerment, valued at $700m, aimed at improving secondary education opportunities for girls in targeted areas.
The World Bank also approved $500m for Nigeria for Women Programme Scale-Up Project, which sought to institutionalise Women Affinity Groups and enhance economic opportunities for unbanked women.
Also, Nigeria – AF Power Sector Recovery Performance-Based Operation received $750m to improve electricity supply reliability, achieve financial and fiscal sustainability, and enhance accountability in the power sector.
The funding approvals recorded in 2024 significantly surpassed those of the previous year, with a total of $4.32bn allocated to various projects.
This increase was largely due to Nigeria’s growing need for financial assistance to stabilise the economy amid mounting fiscal pressures and rising public debt.
One of the largest approvals in 2024 was the Nigeria Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing, which received $1.5bn.
The objective of this funding was to strengthen Nigeria’s economic policy framework by creating fiscal space and protecting vulnerable populations.
Another major loan approval was the NG Accelerating Resource Mobilisation Reforms Programme for Results, which was allocated $750m to raise non-oil revenues and safeguard oil and gas revenues.
Other key approvals in 2024 included the Rural Access and Agricultural Marketing Project – Scale-Up, which received $500m to improve rural access and climate resilience, and the Nigeria Primary Healthcare Provision Strengthening Programme, which was approved for $570m to enhance the utilisation of essential healthcare services and improve health system resilience.
The Nigeria Human Capital Opportunities for Prosperity and Equity – Governance initiative was also approved in 2024, securing $500m in funding to strengthen financial and human resource management in the basic education and primary healthcare sectors.
The Sustainable Power and Irrigation for Nigeria Project, which sought to strengthen dam safety and improve the management of water resources for hydropower and irrigation, was allocated $500m.
So far, not less than 10 loan projects have been approved by the World Bank under the current administration of Bola Tinubu.
For 2025, Nigeria is looking to secure six new loans from the World Bank, with a combined value of $2.23bn.
The planned loans cover key sectors such as digital infrastructure, healthcare, education, nutrition, and community resilience.
Among the new projects in the pipeline is the Building Resilient Digital Infrastructure for Growth initiative, which is expected to receive $500m to expand broadband internet access in underserved areas of the country.
This project aligns with the Federal Government’s digital economy strategy, which seeks to improve connectivity and enhance economic opportunities through the expansion of high-quality digital infrastructure.
Another loan under consideration is the Nigeria Health Security Programme, which is expected to receive $300m to increase regional collaboration and health system capacities to prevent, detect, and respond to health emergencies.
This funding is particularly crucial given Nigeria’s ongoing public health challenges, including the threat of disease outbreaks and the need for stronger emergency preparedness.
The Solutions for Internally Displaced and Host Communities Project is also in the approval pipeline, with a proposed loan of $300m to improve access to basic services and economic opportunities for internally displaced persons and host communities in northern Nigeria.
The World Bank is also in the process of reviewing the Accelerating Nutrition Results in Nigeria 2.0 project, which is expected to receive $80m to enhance the provision of cost-effective, convergent, nutrition-specific and nutrition-sensitive services for pregnant and lactating women, adolescent girls, and children under the age of five.
Another significant loan expected to be approved in 2025 is the HOPE for Quality Basic Education for All project, which is projected to receive $552m to improve foundational learning outcomes, increase access to basic education, and strengthen education systems in participating states.
The final project under consideration for approval is the Nigeria Community Action for Resilience and Economic Stimulus Programme, which is expected to secure $500m to expand access to livelihood support, food security services, and grants for poor and vulnerable households and firms.
The negotiation process for these projects is currently at various stages, ranging from concept reviews to decision meetings.
The BRIDGE initiative and the Health Security Programme are at the concept review stage, indicating that they are still in the early phases of assessment and planning.
Meanwhile, projects such as the HOPE for Quality Basic Education and the Nutrition Results Programme have advanced to the negotiation stage, increasing the likelihood of approval within the year.
Board approvals are expected to take place between March and September. Two key projects are scheduled for board approval on March 31, 2025.
The Accelerating Nutrition Results in Nigeria 2.0 initiative, being handled by the Federal Ministry of Health and Social Welfare, is expected to receive $80m to support nutrition interventions for pregnant and lactating women, adolescent girls, and children under five.
Similarly, the HOPE for Quality Basic Education for All project, under the supervision of the Federal Ministry of Education and the Universal Basic Education Commission, is also set for approval on the same date, with a proposed loan of $552.2m aimed at improving foundational learning and increasing access to basic education in participating states.
Meanwhile, the Community Action for Resilience and Economic Stimulus Programme is slated for approval on March 17, 2025.
Later in the year, the Solutions for the 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 $2.7bn in 2023 to $4.32bn in 2024, and the anticipated $2.23bn 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.
The PUNCH further observed that Nigeria has retained its position as the third-largest debtor to the World Bank’s International Development Association, despite its exposure dropping to $16.8bn 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 $300m in three months from $17.1bn recorded in September 2024.
However, the current amount is still higher than the $16.5bn 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 $17.32bn, with the majority owed to the International Development Association, which accounts for $16.84bn, which represents 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 $485.08m, or 1.13 per cent.
The PUNCH earlier reported that the Federal Government spent $3.58bn servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56bn 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.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, made this known during a meeting with the World Bank Executive Director, Dr Zainab Shamsuna Ahmed, where he outlined Nigeria’s shift towards private sector-led growth.
The statement read, “Edun emphasised 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 acknowledged the critical role played by the World Bank in Nigeria’s development but stressed that the government is prioritising a business-friendly environment to attract sustainable investments.
The Director-General of the DMO, Ms Patience Oniha, has lauded the World Bank for its unwavering support to Nigeria.
Speaking at the 2025 National Sensitisation Workshop on the State Action on Business Enabling Reforms Programme last Monday, Oniha highlighted the multifaceted assistance provided by the international financial institution.
“I would like to acknowledge the World Bank and commend them for their support to Nigeria in various forms,” Oniha stated.
She emphasised that Nigeria benefits from both concessional and semi-concessional funding from the World Bank, which has been instrumental in financing critical development projects across the nation.
Beyond financial aid, Oniha affirmed the significant role of the World Bank in capacity building.
She noted that the institution offers extensive training and technical assistance, enhancing the operational efficiency of Nigerian agencies, including the DMO.
“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,” she remarked, highlighting the bank’s responsiveness to Nigeria’s developmental needs.
Oniha 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,” she added, acknowledging the positive impact of the partnership on both federal and state-level operations.
Source: The Punch
