The World Bank is set to approve fresh loans totaling $632 million for Nigeria today (Monday), amid concerns over the country’s increasing debt profile. The loans will support key sectors, including nutrition and quality basic education.
According to information from the World Bank’s website on Sunday, the two expected approvals include $80 million for the Accelerating Nutrition Results in Nigeria 2.0 project and $552 million for the HOPE for Quality Basic Education for All programme. Both projects, currently in the negotiation stage, are anticipated to receive final approval today. These loans are part of the World Bank’s broader strategy to support Nigeria’s development agenda, focusing on healthcare, education, and community resilience.
The funding is expected to enhance the government’s efforts to improve nutrition outcomes and expand access to quality education for Nigerian children.
Meanwhile, last Friday, the World Bank approved a separate $500 million loan for Nigeria under the Community Action for Resilience and Economic Stimulus Programme. The approval, granted on March 28, 2025, aims to provide livelihood support, food security services, and grants for poor and vulnerable households and businesses. This initiative focuses on helping communities recover from economic hardships through targeted financial assistance.
The programme, titled the NIGERIA: Community Action for Resilience and Economic Stimulus Programme, seeks to support struggling households and small businesses, offering direct grants to ease economic difficulties. This financial injection is expected to bolster Nigeria’s grassroots economy amid challenges such as inflation and high living costs.
However, the approval comes amid delays in releasing funds from a previous loan aimed at assisting poor and vulnerable Nigerians. Further investigations revealed that only $315 million of the $800 million approved for the National Social Safety-Net Program Scale Up had been disbursed. Since December 2021, Nigeria has not received additional funds from this loan due to fraud-related concerns within the programme.
President Bola Tinubu had earlier launched a social safety net initiative that planned to distribute N25,000 to 15 million households over three months to mark the 2023 International Day for the Eradication of Poverty. The programme, under the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, was later suspended due to allegations of fund misappropriation. Former humanitarian minister Betta Edu was suspended following the alleged diversion of N585 million meant for palliative distribution, while her predecessor, Sadiya Umar-Farouq, is under investigation by the EFCC over an alleged N37.1 billion laundering case. The World Bank has since issued sanctions against individuals and businesses found guilty of fraud within these programmes.
In a broader context, the Federal Government is expected to secure six additional loans totaling $2.23 billion from the World Bank in 2025. This will bring Nigeria’s total approved loans to $9.25 billion over three years, reflecting the country’s growing reliance on multilateral funding for infrastructure, healthcare, education, and economic resilience.
Analysis of Nigeria’s loan approvals from the World Bank since 2023 under President Tinubu’s administration shows a significant rise in commitments. In 2023, the World Bank approved $2.7 billion in loans for renewable energy, women’s empowerment, education, and power sector projects. In 2024, loan approvals surged to $4.32 billion, driven by Nigeria’s financial struggles and rising public debt. By 2025, Nigeria plans to secure an additional $2.23 billion in loans to support digital infrastructure, healthcare, education, nutrition, and community resilience initiatives.
Under Tinubu’s leadership, Nigeria has secured 11 different loan projects from the World Bank, amounting to $7.45 billion within less than two years. This has raised concerns over the nation’s increasing debt burden. According to the Debt Management Office, Nigeria’s external debt owed to the World Bank stood at $17.32 billion as of the third quarter of 2024. Most of this debt—$16.84 billion—was borrowed from the International Development Association, making up 39.14% of Nigeria’s total external debt. An additional $485.08 million is owed to the International Bank for Reconstruction and Development, accounting for 1.13% of Nigeria’s external debt.
While the World Bank loans provide fiscal relief, concerns persist about Nigeria’s growing debt. Recent data from the Central Bank of Nigeria shows that the country spent $5.47 billion on external debt servicing over the past 14 months, straining its foreign reserves.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, emphasized that rather than relying solely on debt, the government is prioritizing revenue generation, concessional loans, and strategic investments. “We are optimizing our funding strategies, shifting focus away from expensive commercial loans and towards asset optimization and private sector investments,” Edun stated.
Despite this, the steady rise in World Bank loans—from $2.7 billion in 2023 to $4.32 billion in 2024, and a projected $2.23 billion in 2025—demonstrates Nigeria’s increasing dependence on concessional financing for economic and structural reforms.
Experts have underscored the importance of efficient fund utilization and transparent project execution to ensure that borrowed funds translate into meaningful economic and social benefits. Speaking on Sunday, development economist Dr. Aliyu Ilias warned that while borrowing itself is not necessarily harmful, Nigeria’s growing reliance on debt has become concerning. “At this point, borrowing is becoming a bad thing,” he noted, adding that past administrations faced similar criticisms for excessive debt accumulation.
Ilias acknowledged that the Tinubu administration has improved revenue generation, citing measures like the removal of fuel subsidies, increased electricity tariffs, and proposed tax reforms. He questioned why further borrowing was necessary despite these gains, urging the government to focus on better resource management.
Additionally, he criticized the reliance on the debt-to-GDP ratio as a sustainability measure, cautioning that a proposed GDP rebasing could justify further borrowing. “I expected that in the first four years of this administration, we wouldn’t see borrowing on this scale,” he added.
Similarly, during a media session in Abuja over the weekend, Dr. Tayo Aduloju, CEO of the Nigerian Economic Summit Group, called for a more strategic borrowing plan. He stressed the need for a balanced approach between domestic and external borrowing, ensuring that loans are directed towards critical infrastructure projects with disciplined financing. “We need to be creative about borrowing—how much domestic and external debt we take on and at what cost,” Aduloju stated.
He emphasized that a well-structured borrowing strategy would improve project execution and public confidence, while advocating for a shift towards foreign direct investment rather than excessive borrowing as a sustainable economic model.
