World Bank Loan to Nigeria Under Tinubu on the Rise, Data Shows 3-Year Trend
- New data shows that World Bank loans to Nigeria between 2023 and 2025 are projected to reach $9.65 billion
- The loans are for funding projects in energy, education, health, social protection, and digital infrastructure
- Nigeria is now the the largest IDA borrower in Africa and third globally, while World Bank debt accounts for 41.3% of Nigeria’s $46.98 billion external debt
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria’s borrowing from the World Bank between 2023 and 2025 is projected to reach $9.65 billion, as fresh approvals, ongoing negotiations, and disbursements accelerate across key sectors continue.
The lending covers the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
Source: UGC
Punch reports that when grants are included, total support rises to about $9.77 billion.
What to know about the loans
IBRD loans are issued on commercial or near-commercial terms to middle-income countries, while IDA provides concessional loans and grants to the world’s poorest nations.
The funds have supported projects in power, renewable energy, girls’ education, women’s economic empowerment, social protection, health, and digital infrastructure.
Nigeria began borrowing under President Bola Tinubu with $2.7 billion in 2023, including $750 million IDA for renewable energy expansion, $700 million IDA for girls’ secondary education, $500 million IDA for women’s empowerment, and $750 million combined IBRD/IDA for power sector recovery.
In 2024, approvals surged to $4.25 billion, driven by the Economic Stabilisation & Transformation programme, Resource Mobilisation Reform, rural road access, primary healthcare strengthening, and dam safety projects. Grants totalled $70 million, mainly for health.
For 2025, the figures include $2.695 billion in loans and $52.18 million in grants, funding projects in broadband expansion, education, livelihoods for vulnerable households, health security, nutrition, internally displaced communities, and MSME finance.
Source: Twitter
The Federal Government is also expected to secure an additional $500 million facility in December 2025 for MSME finance.
Across the three years, IDA loans account for $7.30 billion, IBRD loans $2.35 billion, and grants $122.19 million.
Nigeria’s total IDA stock rose to $18.5 billion in September 2025, making it the largest IDA borrower in Africa and the third largest globally. The World Bank Group accounts for $19.39 billion (41.3%) of Nigeria’s external debt of $46.98 billion as of June 30, 2025.
Here is a snapshot of the loans by year
- 2023: $2.7bn
- Renewable energy expansion (IDA) – $750m
- Girls’ secondary education (IDA) – $700m
- Women’s empowerment (IDA) – $500m
- Power sector recovery (IBRD + IDA) – $750m + $301m
- 2024: $4.25bn loans + $70m grants
- Economic Stabilisation & Transformation – $1.5bn (IBRD $750m + IDA $750m)
- Resource Mobilisation Reform – $750m (IBRD)
- Rural roads, healthcare, dam safety – $500m each (IDA), healthcare grant $70m
- 2025: $2.695bn loans + $52.18m grants (pipeline)
- Broadband expansion – $500m (IDA)
- Basic education – $500m (IDA)
- Livelihood support – $500m (IDA)
- Health, nutrition, IDPs – $630m (IDA/IBRD mix)
- MSME finance – $400m IBRD + $100m IDA
- Procurement standards – $65m (IDA)
- CBN banking oversight grant – $6.8m
Loan Composition (3-year total):
- IDA Loans: $7.30bn
- IBRD Loans: $2.35bn
- Grants: $122.19m
Debt servicing in Nigeria
Earlier, Legit.ng reported that the Nigerian government spent N8.93 trillion ($6.2 billion) on debt servicing over nine months, accounting for 61% of the N14.55 trillion revenue generated during the period.
The figure surpasses both quarterly and cumulative targets, highlighting the increasing pressure that debt obligations place on government finances.
According to the report, debt service costs amounted to N2.26 trillion in Q1, N3.77 trillion in Q2, and N2.89 trillion in Q3.
Source: Legit.ng
