The Federal Government is seeking fresh borrowing from the World Bank, even after reporting a 40.5% increase in revenues in the first eight months of 2025. Official figures showed total collections rose to ₦20.59tn between January and August, compared to ₦14.6tn in the same period last year. Non-oil revenue now accounts for 75% of the total, reflecting stronger diversification.
Despite these gains, fiscal pressures remain, particularly around infrastructure and capital spending. On Wednesday, contractors under the All Indigenous Contractors Association of Nigeria protested at the Ministry of Finance in Abuja, demanding payment of about ₦4tn for projects executed in 2024.
To bridge the gap, Nigeria is expected to access $1.75bn in World Bank financing before year-end. The loans will support key projects in agriculture, health, digital infrastructure, and MSME financing, including:
- Sustainable Agricultural Value-Chains for Growth – $500m (approval expected December 11, 2025)
- Building Resilient Digital Infrastructure for Growth – $500m (approval due October 31, 2025)
- Health Security Programme, Phase II – $250m (approval expected September 30, 2025)
- Fostering Inclusive Finance for MSMEs – $500m (approval targeted December 18, 2025)
These new commitments come on top of $8.4bn in World Bank loans already secured by Nigeria between mid-2023 and August 2025 across energy, education, healthcare, rural infrastructure, and governance.
Data from the Debt Management Office shows Nigeria’s debt to the World Bank rose to $18.23bn as of March 2025, up from $17.81bn at the end of 2024. This represents nearly 40% of the country’s total external debt stock of $45.98bn, with the concessional International Development Association accounting for the bulk.
Economists remain split on the strategy. Some argue concessionary loans with low interest and long tenors can drive growth if tied to viable projects. Others caution that rising debt—estimated at ₦149tn and projected to approach ₦180tn—could crowd out public services, worsen inflation, and heighten exchange rate risks unless backed by stronger domestic revenue mobilisation and disciplined spending.
