Nigeria is on track to deepen its financial engagement with the World Bank as new projections show the country’s borrowing will climb to $9.65bn by the end of 2025.
The forecast, contained in a report published by Punch Newspapers, reveals that cumulative loans from the International Bank for Reconstruction and Development and the International Development Association between 2023 and 2025 continue to expand in line with Nigeria’s reform-driven financing needs.
When grants are included, the total support expected from the global lender within the three years rises to about $9.77bn. According to the report, the funds are tied to projects across several critical sectors underpinning the government’s structural reforms and social investment priorities.
Key beneficiaries of this financing pipeline include power sector recovery initiatives, renewable energy expansion, girls’ secondary education programs, and efforts to boost women’s economic participation.
Other areas receiving attention are digital infrastructure, social protection strengthening, healthcare delivery, institutional reforms, rural road access improvements, and major dam safety and irrigation upgrades.
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In addition to existing commitments, the Federal Government is also preparing to secure a new $500m credit facility on December 19, 2025, under the “Fostering Inclusive Finance for MSMEs in Nigeria” initiative. The credit line will be executed through the Development Bank of Nigeria to expand financing access for small and medium-scale enterprises.
The report also situates the new borrowing within Nigeria’s broader debt landscape. As of June 30, 2025, the country’s external debt stood at $46.98bn, with $19.39bn owed to the World Bank Group, making Nigeria the largest IDA borrower in Africa and the third-largest globally.
However, analysts quoted in the report raise concerns over debt sustainability. They warn that with debt servicing already consuming a large share of government revenues, Nigeria must improve domestic revenue mobilisation to avoid entering a cycle of borrowing simply to meet repayment obligations.
