The World Bank is poised to approve $1.13 billion in loans for Nigeria by March 2025, aimed at bolstering the nation’s economic stability, health security, and educational reforms. Three pivotal projects are in the final negotiation stages, with approvals expected this month, signaling a continued partnership between Nigeria and the international financial institution
Among the projects slated for approval is the $80 million “Accelerating Nutrition Results in Nigeria 2.0” program, designed to combat malnutrition, especially among vulnerable populations. The “Community Action for Resilience and Economic Stimulus Programme,” with a $500 million commitment, seeks to stimulate community-driven economic growth. Additionally, the $552.2 million “HOPE for Quality Basic Education for All” initiative targets improvements in educational infrastructure and accessibility.
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These loan approvals come as Nigeria navigates significant economic challenges, including foreign exchange shortages, fiscal deficits, and rising debt service obligations. The potential $1.13 billion in new loans is part of a broader trend, with Nigeria expected to secure $2.23 billion in World Bank loans in 2025, bringing the total approved loans to $9.25 billion over three years
Since 2023, under President Bola Tinubu’s administration, Nigeria’s World Bank loan approvals have seen a notable increase. In 2023, $2.7 billion was approved, followed by a substantial $4.32 billion in 2024. The anticipated $2.23 billion in 2025 will support critical sectors such as digital infrastructure, healthcare, and education, illustrating Nigeria’s growing reliance on multilateral funding.
While these loans offer crucial financial relief, concerns persist regarding Nigeria’s escalating debt burden. The country has spent $5.47 billion on external debt servicing in the past 14 months, straining foreign reserves. The government, however, is exploring alternative funding sources like revenue generation and private sector investments.
Despite these efforts, Nigeria’s dependence on World Bank financing is evident in the consistent growth of loan commitments. The country remains one of the largest debtors to the World Bank’s International Development Association (IDA), with its debt standing at $16.8 billion as of December 2024
Nigeria’s total debt to the World Bank amounts to $17.32 billion, with the majority owed to the IDA. This represents a significant portion of Nigeria’s overall external debt, underscoring the country’s reliance on concessional financing from the World Bank.
