Tinubu Administration Seeks Six New World Bank Loans, Total Borrowing Hits $9.25 Billion

The Nigerian government under President Bola Tinubu is set to secure six new loans totaling $2.23 billion from the World Bank in 2025, further increasing the country’s external debt. According to data from the World Bank’s official website, these new borrowings will push Nigeria’s total approved loans from the institution to $9.25 billion over the past three years.

Nigeria’s reliance on foreign loans has continued to grow, with a steady rise in funding commitments from the World Bank. In 2023, the institution approved $2.7 billion in loans for Nigeria, directed at various sectors, including renewable energy, education, and women’s empowerment. Among the key loans that year was the Nigeria Distributed Access through Renewable Energy Scale-up Project, which received $750 million to expand electricity access for households, public institutions, and businesses. Another $700 million was allocated for the Financing for Adolescent Girls Initiative for Learning and Empowerment, aimed at improving secondary education opportunities for girls in selected areas. The Nigeria for Women Programme Scale-Up Project also received $500 million to enhance economic opportunities for unbanked women, while the power sector benefited from a $750 million loan under the Nigeria-AF Power Sector Recovery Performance-Based Operation.

By 2024, Nigeria’s borrowing from the World Bank surged further, with $4.32 billion approved for various projects. While these funds support infrastructure and social programs, the burden of debt servicing remains a major challenge for the economy. Government data from the Open Treasury Portal reveals that in 2024 alone, Nigeria spent N8.1 trillion on debt servicing. This included N5.299 trillion for internal public debt and N2.747 trillion for external obligations, an amount that far exceeded budget allocations for key sectors.

For instance, while debt servicing costs soared, only N74.3 billion was allocated for electricity infrastructure, N31.8 billion for water facilities, and N40.2 billion for hospitals and health centers. Public school rehabilitation received just N13.4 billion, while N384.485 billion was set aside for road repairs. These figures highlight the strain that rising debt places on government spending priorities.

Nigeria’s growing dependence on external loans raises concerns about long-term financial sustainability. As debt servicing consumes an increasing share of revenue, experts warn of the impact on future budgets and the government’s ability to fund essential services. With the latest loans set to push Nigeria’s total borrowing from the World Bank to $9.25 billion in three years, there is mounting pressure on the administration to ensure that these funds contribute to economic growth rather than deepening the country’s debt burden.