LAGOS, Nigeria (Chatnewstv.com) — Nigeria’s total borrowing from the World Bank is projected to reach $9.65 billion between 2023 and 2025, according to new financial data reviewed by The Associated Press. The escalating debt, primarily channeled into development projects and economic stabilization, has cemented Nigeria’s position as the largest International Development Association (IDA) borrower in Africa and the third-largest globally.
Including grants, the total World Bank support over the three-year period is expected to climb to $9.77 billion, with the majority of the funding coming from the IDA, the bank’s concessional lending arm for the world’s poorest countries.
The borrowing trajectory has accelerated sharply under the current administration. Disbursements and commitments are detailed as follows:
2023: $2.7 billion
2024: $4.25 billion (boosted significantly by a $1.5 billion economic stabilization program)
2025 (Projected): $2.695 billion
The bulk of these loans are tied to critical sectors, including power sector reforms, education, digital infrastructure, health, and general economic stabilization programs. The data shows Nigeria’s total IDA exposure rising to a staggering $18.5 billion as of September 2025.
Economic Divide on Borrowing
The country is currently grappling with mounting debt, high poverty rates, and chronic unemployment, setting the stage for a polarized debate among economists regarding the sustainability and prudence of the heavy borrowing.
Some experts maintain that the concessional loans are a necessary lifeline for development.
“These loans are essential for bridging our infrastructure and human capital deficits, provided they are strategically funneled into projects that are revenue-generating and growth-driven,” said an economist who spoke on condition of anonymity to discuss government financial strategy.
However, a chorus of critics warns that the escalating external debt poses a significant threat to the nation’s fragile economy.
“The rationale for such heavy borrowing is difficult to justify, especially considering the government’s concurrent claims of improved revenue performance,” stated a prominent financial analyst. “Nigeria’s debt service burden is already rising unsustainably, external borrowing is intensifying our inflationary pressures, and the country’s exchange rate crisis is worsening by the day.”
The disagreement centers on the trade-off between securing low-interest funds for development versus intensifying the country’s debt service obligations amid an already precarious financial climate.
