The Federal Government of Nigeria is set to secure six new loans totaling $2.23 billion from the World Bank in 2025. This move aligns with the country’s strategy to support critical sectors such as digital infrastructure, healthcare, education, and economic resilience.
According to data from the World Bank, Nigeria’s total approved loans will rise to $9.25 billion over three years. This trend reflects the country’s increasing reliance on multilateral funding to drive economic growth and implement key structural reforms.
Breakdown of Nigeria’s World Bank Loans from 2023 to 2025
2023: $2.7 Billion in Loan Approvals
In 2023, Nigeria received $2.7 billion in World Bank loans, targeting sectors such as:
- Renewable energy: $750 million for the Nigeria Distributed Access through Renewable Energy Scale-up Project.
- Women’s empowerment: $500 million for the Nigeria for Women Programme Scale-Up Project.
- Education: $700 million for the Adolescent Girls Initiative for Learning and Empowerment.
- Power sector: $750 million for the Power Sector Recovery Performance-Based Operation.
2024: $4.32 Billion in Loan Approvals
Loan approvals increased to $4.32 billion in 2024, with notable projects including:
- Economic stabilization: $1.5 billion for the Nigeria Reforms for Economic Stabilisation Programme.
- Non-oil revenue generation: $750 million for the NG Accelerating Resource Mobilisation Reforms Programme.
- Healthcare: $570 million for the Nigeria Primary Healthcare Provision Strengthening Programme.
- Rural development: $500 million for the Rural Access and Agricultural Marketing Project.
2025: Planned $2.23 Billion in Loans
The six World Bank loan projects under consideration for 2025 include:
- Building Resilient Digital Infrastructure for Growth ($500 million): Expansion of broadband access in underserved areas.
- Nigeria Health Security Programme ($300 million): Strengthening healthcare systems and emergency preparedness.
- Solutions for Internally Displaced and Host Communities ($300 million): Improving access to basic services in northern Nigeria.
- Accelerating Nutrition Results in Nigeria 2.0 ($80 million): Providing nutrition-focused services for pregnant women and children.
- HOPE for Quality Basic Education for All ($552 million): Enhancing foundational learning and education access.
- Nigeria Community Action for Resilience and Economic Stimulus Programme ($500 million): Expanding support for vulnerable communities.
Despite the increased World Bank funding, Nigeria remains the third-largest debtor to the International Development Association (IDA), with $16.8 billion in exposure as of December 31, 2024.
Data from the Debt Management Office (DMO) reveals that the World Bank holds 39.14% of Nigeria’s external debt, with total obligations amounting to $17.32 billion.
In the first nine months of 2024, Nigeria spent $3.58 billion servicing foreign debt—a 39.77% increase compared to $2.56 billion in the same period in 2023.
Government’s Stance on External Borrowing
The Minister of Finance, Wale Edun, has reaffirmed the government’s commitment to reducing dependence on external loans, emphasizing a shift towards private-sector-led economic growth.
Meanwhile, DMO Director-General, Ms. Patience Oniha, has commended the World Bank’s support, highlighting its role in financing development projects and providing capacity-building assistance.
While Nigeria continues to seek concessional financing for economic reforms, concerns about rising debt levels and fiscal sustainability remain a topic of debate among economic analysts.
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