Nigeria’s reliance on external loans continues as the government under Bola Tinubu plans to secure six new loans totalling $2.23billion from the World Bank in 2025.
According to data from the World Bank’s official website, with these new borrowings, Nigeria’s total approved loans from the institution will reach $9.25 billion over three years.
An examination of Nigeria’s loan approvals from the World Bank since 2023 indicates a significant rise in funding commitments.
In 2023, the World Bank approved $2.7 billion in loans for Nigeria, with the funds primarily allocated to projects in renewable energy, women’s empowerment, education, and the power sector.
Among the major loans approved that year was the Nigeria Distributed Access through Renewable Energy Scale-up Project, which received $750 million to expand private sector-led access to reliable electricity services for households, public institutions, and businesses.
The government also secured an additional $700million loan under the Financing for Adolescent Girls Initiative for Learning and Empowerment, aimed at improving secondary education opportunities for girls in selected areas.
Another $500 million was allocated to the Nigeria for Women Programme Scale-Up Project, designed to institutionalize Women Affinity Groups and enhance economic opportunities for unbanked women.
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Additionally, the Nigeria – AF Power Sector Recovery Performance-Based Operation received $750 million to improve electricity supply reliability, financial and fiscal sustainability, and accountability within the power sector.
By 2024, Nigeria’s borrowing from the World Bank increased further, with a total of $4.32 billion approved for various projects. According to data from the government’s Open Treasury Portal, Nigeria spent N8.1 trillion on debt servicing in 2024 alone.
This included: – N5.299 trillion for servicing internal public debt from January to December 2024. – N2.747 trillion allocated to servicing external public debt. The combined N8.046 trillion spent on both internal and external debt servicing in 2024 dwarfed allocations to key sectors, highlighting the strain on government finances. For example, compared to the massive debt servicing expenditure: –
“Only N74.3 billion was allocated for the construction of electricity infrastructure under the State House Headquarters budget. – Spending on water facilities was just N31.8 billion – Investments in hospitals and health centers totaled N40.2 billion – Public school rehabilitation received a mere N13.4 billion. – Road repairs and rehabilitation were allocated N384.485 billion, still far below what was spent on debt servicing.
The new loans is set to increase Nigeria’s total borrowing from the World Bank to $9.25 billion in just three years of the Tinubu government.
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