Nigeria’s World Bank Debt to Reach $9.65bn

Nigeria’s World Bank debt is projected to reach $9.65 billion by the end of 2025, with total support from the bank rising to $9.77 billion when grants are included.

The debt is comprised of loans from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), with IDA loans accounting for about $7.30 billion and IBRD loans contributing roughly $2.35 billion.

The Federal Government is expected to secure another $500 million facility on December 19, 2025, under the Fostering Inclusive Finance for MSMEs in Nigeria project, which will be implemented through the Development Bank of Nigeria.

The borrowing cycle under President Bola Tinubu’s administration began with $2.7 billion in loans in 2023, focusing on power sector recovery, renewable energy access, girls’ education, and women’s economic empowerment.

In 2024, new approvals reached $4.25 billion, representing a 57.4% increase from the previous year, driven by policy-based operations and investment packages.

The Nigeria Reforms for Economic Stabilisation to Enable Transformation programme received $1.5 billion in loans, split between $750 million IBRD and $750 million IDA, to support fiscal space and vulnerable populations.

For 2025, the data shows $2.695 billion in loans at various stages of project processing, alongside $52.18 million in grants, focusing on financial inclusion, digital broadband, health, education, and social protection.

Nigeria’s external debt stood at $46.98 billion as of June 30, 2025, with the World Bank Group accounting for $19.39 billion, or 41.3% of the total.

Economists warn that the rising loan pipeline could deepen fiscal pressures if not matched with stronger domestic revenue mobilisation and prudent expenditure management.

The World Bank has expressed commitment to supporting Nigeria’s development programmes, with the country maintaining its position as the third-largest IDA borrower globally .