FG Eyes $1.75bn World Bank Loan Despite Revenue Surge

The Federal Government is seeking a fresh $1.75 billion loan from the World Bank, even as revenues for the first eight months of 2025 rose by 40.5% to ₦20.59 trillion, driven largely by non-oil earnings.

Despite earlier assurances from President Bola Tinubu that Nigeria had surpassed its 2025 revenue targets and would cut reliance on borrowing, funding gaps in infrastructure and capital projects have forced a renewed borrowing plan.

According to official data, the World Bank is expected to approve four loans before year-end:

• $500m for the Nigeria Sustainable Agricultural Value-Chains for Growth project (approval Dec 11).
• $500m for Building Resilient Digital Infrastructure for Growth (approval Oct 31).
• $250m for the Health Security Programme – Nigeria Phase II (approval Sept 30).
• $500m for Fostering Inclusive Finance for MSMEs (approval Dec 18).

Nigeria’s debt to the World Bank rose to $18.23bn as of March 2025, representing nearly 40% of external debt. Economists warn that while multilateral loans are concessionary, fiscal risks are rising, with total debt estimated near ₦149tn.

Experts stress that the key issue is debt sustainability, urging the government to ensure loans are tied to projects that generate growth and revenue to avoid deeper fiscal distress.