The World Bank has approved a total of $8.40 billion in fresh loans to Nigeria over the past two years, according to data obtained from the bank’s official website. This substantial funding is aimed at supporting 15 critical projects in various sectors, including energy, education, healthcare, rural infrastructure, and governance. The approved amount comprises $1.95 billion from the International Bank for Reconstruction and Development and $6.50 billion from the International Development Association.
The most recent loan approval is $300 million for the Solutions for the Internally Displaced and Host Communities Project, designed to strengthen resilience and expand access to essential services for Internally Displaced Persons (IDPs) and their host communities in Northern Nigeria. This project is expected to benefit up to 7.4 million people, including approximately 1.3 million IDPs, by adopting an integrated development strategy aligned with Nigeria’s long-term development vision. World Bank Country Director for Nigeria, Mathew Verghis, emphasized that the project’s integrated approach will ensure that IDPs and host communities can transition from dependency on humanitarian assistance to self-reliance and resilience.
Some notable loan approvals include:
– $750 million each for the Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing and the NG Accelerating Resource Mobilisation Reforms Programme-for-Results, aimed at strengthening the economic policy framework and raising non-oil revenues.
– $750 million for the Nigeria Distributed Access through Renewable Energy Scale-up Project to expand private sector-led access to clean and reliable electricity.
– $700 million for the Additional Financing for the Adolescent Girls Initiative for Learning and Empowerment to improve secondary education opportunities for girls.
– $500 million each for the Primary Healthcare Provision Strengthening Program and the Human Capital Opportunities for Prosperity and Equity Governance Project.
Nigeria is expected to receive approval on three more loans and a grant from the World Bank before the end of 2025, potentially pushing total commitments to $9.65 billion. The additional funding includes.
– $250 million for the Health Security Program in Western and Central Africa, Nigeria – Phase III.
– $500 million for the Building Resilient Digital Infrastructure for Growth Project to expand inclusive access to climate-resilient broadband internet.
– $500 million for the Nigeria Sustainable Agricultural Value-Chains for Growth Project to foster sustainable growth and job creation.
Economists have raised concerns that Nigeria’s rising debt profile could deepen fiscal pressures if not matched with stronger domestic revenue mobilization and prudent expenditure management. Lagos-based economist Adewale Abimbola noted that while loans from multilateral institutions like the World Bank are largely concessionary, the critical question is whether the loans are structured and deployed effectively. Dr. Aliyu Ilias, Development Economist and CEO of CSA Advisory, expressed strong reservations over Nigeria’s rising debt profile, questioning the rationale for taking on more debt amid claims of higher revenues.
According to the Debt Management Office, Nigeria’s total debt to the World Bank rose to $18.23 billion as of March 31, 2025, accounting for approximately 39.7% of the country’s total external debt stock. The World Bank’s share of Nigeria’s multilateral debt has also increased, now constituting 81.2% of the total multilateral debt.
