Nigeria’s Rising Debt: World Bank Set to Approve Another $2.2 Billion Loan in 2025

Nigeria’s rising debt continues to spark concern as the World Bank prepares to approve another $2.2 billion loan in 2025. With the country already among the top global debtors, many Nigerians fear the impact of continuous borrowing on economic stability. Will these loans bring development or financial trouble? Read the full details now!

The World Bank is set to approve another $2.2 billion loan for Nigeria in 2025, further deepening the country’s growing debt profile. The loan will be spread across six development projects in education, health, digital infrastructure, and economic resilience.

The Washington-based financial institution disclosed that the funds are intended to strengthen Nigeria’s economic recovery and development efforts. However, Nigerians are increasingly worried about the country’s escalating debt burden, which has been exacerbated by successive governments consistently taking massive loans without clear repayment strategies.

Breakdown of the $2.2 Billion Loan Projects

The World Bank outlined the specific allocations for each project, with expected approval dates:

$500 million – Community Action for Resilience and Economic Stimulus Programme (Approval: March 17, 2025)

$800 million – Accelerating Nutrition Results in Nigeria 2.0 (Approval: March 31, 2025)

$300 million – Solutions for Internally Displaced and Host Communities Project (Approval: July 15, 2025)

$300 million – Health Security Program (Approval: August 19, 2025)

$500 million – Building Resilient Digital Infrastructure for Growth (BRIDGE) (Approval: September 15, 2025)

While some of these projects, such as the Accelerating Nutrition Results in Nigeria 2.0 and the HOPE for Quality Basic Education initiative, have reached the negotiation stage, others, including the BRIDGE initiative and the Health Security Programme, remain in the early planning phase.

Nigeria’s Debt Crisis: A Growing Concern

In 2024, Nigeria secured a $1.5 billion loan from the World Bank to stabilize its economy and enhance resource mobilization. However, concerns are mounting over the country’s soaring debt levels.

As of September 30, 2024, Nigeria’s exposure to the International Development Association (IDA) stood at $17.1 billion, making it the third-largest borrower globally. Although this figure slightly dropped to $16.8 billion by December 31, 2024, Nigeria remains among the World Bank’s top three debtors.

With another $2.2 billion loan set for approval in 2025, many Nigerians fear that the country’s debt trajectory could lead to severe economic consequences, including increased inflation, higher taxation, and potential austerity measures.

Public Outcry Over Excessive Borrowing

Critics argue that Nigeria’s repeated reliance on foreign loans suggests poor financial management and weak revenue generation strategies. Many believe that rather than continuously borrowing, the government should focus on boosting internally generated revenue, cutting wasteful spending, and ensuring that previous loans are transparently utilized for intended development projects.

Economic analysts warn that excessive borrowing without concrete repayment plans could lead to a debt trap, where Nigeria struggles to meet its repayment obligations, leading to potential economic instability.

Will These Loans Bring Real Development?

Despite government assurances that these funds will drive economic growth, past experiences have left many skeptical. While infrastructure, education, and healthcare remain critical areas requiring investment, the question remains: Will these loans be effectively utilized, or will they deepen Nigeria’s economic woes?

As the country awaits the World Bank’s final approval, Nigerians continue to debate whether these loans represent a necessary investment or a financial time bomb for future generations.