Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Nigerian government is about to secure six new loans of about $2.23 billion from the World Bank in 2025 as the bank continues to support the country’s economic reforms.

According to data from the World Bank, the new borrowings will bring Nigeria’s total debt to the World Bank to $9.25 billion in three years, showing a continued dependence on external funding to support critical sectors of the economy.

A breakdown of Nigeria’s loan approvals from the global financial institution since 2023 under President Bola Tinubu shows a rising increase in funding commitments.

In 2023, the World Bank granted $2.7 billion in loans to Nigeria, targeted at projects in renewable energy, women’s empowerment, education, and power.

The World Bank has approved 10 loans for President Bola Tinubu’s government.

Nigeria is seeking to secure six new loans from the World Bank valued at $2.23 billion.

The government reportedly plans to use the facility to cover critical infrastructure in digital infrastructure, healthcare, education, nutrition, and other areas.

• Another project is the $552 million HOPE for Quality Basic Education for All project
• $500 million for Nigeria Community Action for Resilience and Economic Stimulus Programme

According to a Punch report, the negotiation process for the projects has advanced to various stages.

The report said board approvals are expected between March and September 2025, with two key projects scheduled for board approvals on March 31, 2025.

The final loan approval for this year is the Building Resilient Digital Infrastructure for Growth project, which the board has set for September 15, 2025.

Experts say the rising trend in loan approvals from the World Bank for Nigeria shows confidence in its ongoing reforms in critical areas such as fiscal policy, human capital development, and infrastructure growth.

They say the reason for the rising loans from global lenders is to get external funding to finance its development initiatives, focusing on closing infrastructural gaps and improving service delivery.

Nigeria depends on external borrowing to shore up its huge infrastructure deficit, which analysts say is slow compared to its burgeoning population.

According to reports, the consistent growth in the World Bank’s fiscal commitments to Nigeria from $2.7 billion to $4.23 billion in 2024 and the expected $2.23 billion in 2025, shows Nigeria’s dependence on concessional funding to boost structural reforms and public sector investments.

The borrowing trend also shows the government’s plans to leverage international aid to address challenges and implement critical reforms to achieve stability and growth.

Legit.ng earlier reported that Nigeria remained the third-largest debtor to the World Bank’s International Development Association (IDA).

The World Bank revealed in its latest financials for 2024 that Nigeria’s debt to the IDA dipped by $300 million in three months from $17.1 billion in September 2024.

Top 10 African Countries with Highest Debts to IMF

Meanwhile, Legit.ng previously reported that some African countries have considerably reduced their debt exposure to the International Monetary Fund (IMF) since 2024.

However, others have continued to accumulate debts as they depend on global lenders like the IMF for financial aid.

Experts have said that excessive debt accumulation from global lenders could jeopardise a country’s fiscal and economic stability.

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Source: Legit.ng