Abuja, Nigeria – The Federal Government under President Bola Tinubu has secured loans totaling $6.45 billion from the World Bank within the past 16 months. This amount increased following the recent approval of three new loans amounting to $1.57 billion for various projects in Nigeria, with more expected in the coming months.
This development brings the total loans approved for Nigeria to $24.088 billion over the last five years. While these loans aim to fund key development initiatives across the country, growing concerns have emerged over Nigeria’s increasing debt burden and the sustainability of these financial commitments.
Under President Tinubu’s administration, loans have been allocated for several critical sectors, including $750 million for power projects, $500 million for women’s empowerment, $700 million for girls’ education, $750 million for renewable energy, and $1.5 billion for economic stabilization reforms.
Many Nigerians have expressed frustration over the government’s continued borrowing, especially in light of longstanding infrastructure decay and rising unemployment. While some citizens acknowledge the country’s financial limitations, they believe past borrowings have not produced significant improvements.
According to documents obtained from the World Bank’s website, Nigeria has consistently secured loans since 2020. In 2020 alone, the bank approved $6.36 billion in loans for 15 projects, including the Nigeria Rural Access and Agricultural Marketing Project ($510 million) and the Nigeria Digital Identification for Development Project ($430 million). In subsequent years, Nigeria secured $3.2 billion in 2021 and $1.26 billion in 2022 under former President Muhammadu Buhari’s administration.
In 2023, loan requests increased, with $2.7 billion approved for projects such as the Nigeria-AF Power Sector Recovery Performance-Based Operation ($750 million) and the Nigeria Distributed Access through Renewable Energy Scale-up Project ($750 million). As of 2024, the World Bank has already approved $3.82 billion for five projects, including a $70 million grant, with more credit facilities anticipated before the year’s end.
The World Bank loans strategically target sectors such as economic reforms, resource mobilization, adolescent girls’ education, and renewable energy. In June 2024, the World Bank approved $2.25 billion in loans to support Nigeria’s economic stability and vulnerable populations.
In its latest approval on September 26, 2024, the bank endorsed three operations totaling $1.57 billion to improve health services for women, children, and adolescents, and to strengthen Nigeria’s resilience to climate change impacts such as floods and droughts. These loans will also support dam safety and irrigation projects, which are essential for water resource management.
Nigeria’s debt to the World Bank now stands at $15.59 billion as of March 31, 2024, according to data from the Debt Management Office. Meanwhile, the country’s debt servicing costs surged by 68.8% in the first half of 2024, reaching N6.04 trillion compared to N3.58 trillion in the same period in 2023. This rise in debt servicing costs is partly attributed to the devaluation of the naira, adding further strain on the country’s financial resources.