World Bank financing to Nigeria is projected to reach $9.65bn by the end of 2025. The estimate reflects a surge in loan approvals, ongoing negotiations, and active disbursements across major sectors. These figures cover both IBRD and IDA loans, with grants lifting total support to $9.77bn.
Nigeria has expanded borrowing to back reforms in digital infrastructure, education, health, power, and social protection. Officials defend the concessional terms, stressing their importance for growth. The government expects an additional $500m facility in December 2025 to boost MSME financing through the Development Bank of Nigeria.
Nigeria secured $2.7bn in loans in 2023, targeting power recovery, clean energy, women’s empowerment, and girls’ education. Loan approvals jumped to $4.25bn in 2024, driven by economic reform programmes and three separate $500m investment packages.
For 2025, the loan pipeline stands at $2.695bn with grants worth $52.18m. Key projects include broadband expansion, basic education, and livelihood support for vulnerable households. Health security and nutrition also feature strongly.
Economists warn that rising loans may worsen fiscal pressure without stronger revenue growth. They stress the need for effective utilisation to avoid deeper vulnerability. Some analysts argue that recent revenue gains should reduce borrowing needs. They caution that heavy debt servicing already limits public spending.
Nigeria is now the largest IDA borrower in Africa and the third-largest globally. Its IDA exposure rose to $18.5bn in 2025. External debt reached $46.98bn, with the World Bank holding 41.3 per cent.
Experts emphasise the importance of prudent debt management. They argue that concessional loans must support projects that strengthen long-term repayment capacity.
