Nigeria is set to receive six new loans from the World Bank in 2025, amounting to $2.23 billion. With this, the country’s total World Bank loans over the past three years will reach $9.2 billion. These funds will be used to support education, healthcare, digital infrastructure, and economic stability.
While the loans aim to improve key sectors, concerns are rising over Nigeria’s growing debt and its long-term impact on the economy. Let’s take a closer look at the loan history, new projects, and economic implications.
Since 2023, Nigeria has increasingly relied on World Bank funding to support development projects. The rising number of loans highlights the government’s need for external financing to stabilize the economy, address infrastructure gaps, and improve social services.
In 2023, the World Bank approved $2.7 billion in loans for Nigeria. Some of the key projects included:
- Renewable Energy Expansion ($750 million) – Aimed at increasing electricity access through private sector-led projects.
- Education for Girls ($700 million) – Focused on improving secondary school opportunities for girls in targeted areas.
- Women Empowerment ($500 million) – Designed to provide financial and economic opportunities for unbanked women.
- Power Sector Improvement ($750 million) – Sought to enhance electricity reliability and ensure financial stability in the energy sector.
In 2024, Nigeria’s loan approvals significantly increased to $4.32 billion, reflecting the country’s growing financial challenges. Some of the major projects funded included:
- Economic Stabilization ($1.5 billion) – Aimed at strengthening economic policies and creating financial stability.
- Revenue Mobilization ($750 million) – Designed to improve tax collection and protect oil and gas revenues.
- Healthcare System Strengthening ($570 million) – Focused on improving access to essential healthcare services.
- Rural Infrastructure Development ($500 million) – Intended to enhance roads and transportation for farmers.
This sharp increase in loan approvals suggests Nigeria is turning to the World Bank as a key financial partner to manage its economic reforms and infrastructure development
In 2025, Nigeria plans to take six new loans to fund crucial projects. These loans are currently at different stages of approval, with final board decisions expected between March and September 2025
- This project aims to expand broadband internet access in underserved areas.
- It supports the government’s digital economy strategy, which focuses on improving connectivity and boosting economic opportunities through better digital infrastructure.
- This funding is meant to strengthen the health system and improve Nigeria’s ability to handle health emergencies.
- The project will enhance regional collaboration to detect and respond to disease outbreaks.
- This loan is targeted at northern Nigeria, where millions of people have been displaced due to conflicts and insecurity.
- The funding will help provide basic services and job opportunities to internally displaced persons (IDPs) and their host communities.
- This project aims to improve nutrition services for pregnant women, lactating mothers, and children under five.
- It will fund cost-effective nutrition-specific programs that reduce malnutrition rates.
- This project focuses on improving education quality and increasing access to basic education in participating states.
- It will strengthen Nigeria’s education system and help more children stay in school.
- This initiative will provide livelihood support, food security services, and financial grants to poor and vulnerable households.
- The goal is to reduce poverty and strengthen economic resilience.
These projects cover digital infrastructure, healthcare, education, and economic stability, showing the government’s focus on improving key sectors through foreign loans.
Nigeria remains one of the largest borrowers from the World Bank’s International Development Association (IDA). As of December 2024, the country’s total debt to the IDA stood at $16.8 billion, accounting for 39.14% of its total external debt.
Nigeria spent $3.58 billion on foreign debt repayments in the first nine months of 2024. This marked a 39.77% increase compared to 2023, putting more pressure on the country’s finances.
Despite increasing borrowings, the Nigerian government insists it is working towards reducing reliance on foreign loans.
Finance Minister Wale Edun has emphasized that President Tinubu is committed to:
- Creating a business-friendly environment.
- Attracting private sector investments.
- Strengthening Nigeria’s economic foundation without excessive borrowing.
The government believes foreign investment and private sector-led growth will be key to reducing long-term dependence on external loans.
Aside from funding, the World Bank provides:
- Technical assistance – Training Nigerian officials and helping with policy planning.
- Capacity building – Supporting Nigerian agencies like the Debt Management Office (DMO) in managing financial projects.
Government officials have praised the World Bank’s support beyond financial aid, highlighting its role in Nigeria’s economic reforms.