The Federal Government is set to borrow 1.75 billion dollars from the World Bank before the end of 2025 to fund key development projects, despite reporting a 40.5 per cent surge in revenue for the first eight months of the year.
According to the Presidency, total revenue from January to August 2025 reached 20.59 trillion naira, up from 14.6 trillion naira in the same period last year, with non-oil revenue now accounting for 75 per cent of total collections.
The planned loans aim to address funding gaps in critical sectors, including agriculture, health, digital infrastructure, and finance. Projects expected to benefit include the Nigeria Sustainable Agricultural Value-Chains for Growth Project, which will receive 500 million dollars to boost agricultural productivity and rural development, with approval expected on December 11, 2025.
The Building Resilient Digital Infrastructure for Growth project will receive 500 million dollars to strengthen Nigeria’s digital economy and foster technology-sector growth, with approval scheduled for October 31, 2025. The Health Security Programme in Western and Central Africa, Nigeria – Phase II, will receive 250 million dollars to enhance health systems and emergency preparedness, with approval expected September 30, 2025. The Fostering Inclusive Finance for MSMEs in Nigeria project, aimed at expanding financing for small and medium-sized enterprises, will be allocated 500 million dollars, with approval set for December 18, 2025.
Collectively, these initiatives make up the 1.75 billion dollar loan package, which is part of the World Bank’s broader engagement in Nigeria. Over the past two years, the World Bank has approved 8.4 billion dollars in new loans to the country across 15 projects in energy, healthcare, education, rural infrastructure, and governance.
Economists have weighed in on the move. Lagos-based Adewale Abimbola said loans from multilateral institutions like the World Bank are largely concessionary, with below-market interest rates and longer repayment periods. He explained that borrowing is not a problem if it is tied to viable projects with medium-term revenue prospects and used effectively.
Development economist Dr Aliyu Ilias expressed concerns over Nigeria’s rising debt profile, which has increased from 87 trillion naira under former President Muhammadu Buhari to around 149 trillion naira. He warned that borrowing, despite higher revenue inflows, could crowd out capital spending and strain public services.
Data from the Debt Management Office shows Nigeria’s total debt to the World Bank rose to 18.23 billion dollars as of March 31, 2025, representing nearly 40 per cent of the country’s total external debt and 81.2 per cent of its multilateral debt.
While the 1.75 billion dollar loans are expected to support strategic development projects, experts stress that debt sustainability depends on careful planning, strong revenue mobilisation, and effective deployment of funds to ensure long-term economic benefits.