Despite a 40.5 percent surge in revenue for the first eight months of 2025 driven primarily by strong non-oil revenue collection Nigeria’s Federal Government plans to increase its borrowing, seeking a fresh $1.75 billion loan from the World Bank. This move comes amid significant funding gaps in critical sectors such as infrastructure, where capital spending remains low, and payments to local contractors for 2024 projects total about ₦4 trillion.
The World Bank is expected to approve loans totaling $1.75 billion before the end of 2025 to finance key initiatives across agriculture, health, digital infrastructure, and inclusive finance for MSMEs. Key projects include:
- $500 million for the Nigeria Sustainable Agricultural Value-Chains for Growth project, aimed at boosting agricultural productivity and rural development (approval expected December 11, 2025).
- $500 million for Building Resilient Digital Infrastructure for Growth, focusing on enhancing Nigeria’s digital economy (approval expected October 31, 2025).
- $250 million for the Health Security Programme in Western and Central Africa, Nigeria – Phase II, to strengthen health systems and emergency preparedness (approval expected September 30, 2025).
- $500 million for Fostering Inclusive Finance for MSMEs in Nigeria, aiming to improve access to finance for small and medium enterprises (approval expected December 18, 2025).
These projects are part of an ongoing strategy to address Nigeria’s developmental challenges, even as concerns rise over the country’s growing debt profile. Nigeria’s total debt stock has surged to around ₦149 trillion, raising fiscal pressure amid the government’s claims of meeting revenue targets ahead of schedule and reducing borrowing reliance.
Economists stress that while the concessional nature of World Bank loans offering below-market interest rates and extended repayment schedules is advantageous, the critical issue remains the effective deployment of funds towards growth-generating projects. They warn that without prudent management and strong domestic revenue mobilisation, rising debt could hamper public service delivery, fuel inflation, and exacerbate foreign exchange pressures.
Data indicates Nigeria’s indebtedness to the World Bank has increased to $18.23 billion as of March 31, 2025, representing nearly 40 percent of the country’s total external debt, highlighting the institution’s pivotal role in the nation’s financing framework.