Nigeria’s debt to the World Bank is expected to reach $9.2 billion, as the Federal Government plans to secure six new loans totalling $2.23 billion within the year.
These loans aim to support various sectors, including digital infrastructure, healthcare, education, nutrition, and community resilience.
Notable projects include the Building Resilient Digital Infrastructure for Growth initiative ($500 million) and the Nigeria Health Security Programme ($300 million).
This anticipated borrowing will increase Nigeria’s total approved loans from the World Bank to $9.25 billion over three years, reflecting a growing reliance on multilateral funding for critical economic sectors.
Despite this increased borrowing, Nigeria’s exposure to the International Development Association (IDA) has slightly decreased, standing at $16.8 billion as of December 31, 2024, down from $17.1 billion in September 2024.
However, this amount remains higher than the $16.5 billion recorded in June 2024. The World Bank’s financial commitments to Nigeria have grown consistently, from $2.7 billion in 2023 to $4.32 billion in 2024, with an anticipated $2.23 billion in 2025.
This trend underscores the country’s increasing dependence on concessional financing to drive structural reforms and public sector investments.
In response to concerns about rising debt levels, the Nigerian government has expressed a commitment to reducing reliance on external borrowing.
Finance Minister Wale Edun emphasized the focus on strengthening the country’s economic foundation and prioritizing private sector-led development to achieve long-term economic independence.
The Debt Management Office (DMO) has acknowledged the World Bank’s support, highlighting the multifaceted assistance provided, including concessional and semi-concessional funding, as well as capacity-building initiatives. This support has been instrumental in financing critical development projects across Nigeria.
