- data shows an 11.7 percent increase from the $17.81bn recorded in 2024
- World Bank loans accounted for about 38 percent of Nigeria’s total external debt, which stood at $51.86bn by year-end
Nigeria’s financial exposure to the World Bank climbed significantly in 2025, rising by $2.08bn to reach $19.89bn by the end of the year, according to figures released by the Debt Management Office.
Eko Hot Blog reports that the latest data shows an 11.7 percent increase from the $17.81bn recorded in 2024.
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The loans are drawn from two key arms of the World Bank, the International Development Association and the International Bank for Reconstruction and Development, which provide concessional funding and development financing to countries at different income levels.
A closer look at the figures reveals that borrowing from the IDA rose sharply to $18.51bn in 2025, while debt linked to the IBRD also increased to $1.38bn.
Overall, World Bank loans accounted for about 38 percent of Nigeria’s total external debt, which stood at $51.86bn by year-end. Although the institution remains the country’s largest single creditor, its share of the total debt declined slightly due to faster growth in other borrowing sources, including commercial loans and Eurobonds.
Nigeria’s total external debt rose by over $6bn within the same period, with World Bank financing contributing a substantial portion of that increase.
Multilateral and bilateral debts also recorded moderate growth, reflecting continued reliance on international lenders.
Analysts say the trend highlights the government’s dependence on relatively cheaper and longer-term financing options, especially amid tight fiscal conditions and limited access to affordable market funding.
However, economists caution that rising debt levels could place additional pressure on public finances if not properly managed.
While concessional loans are generally seen as favourable, experts stress that their long-term impact depends on how effectively the funds are invested.
Economic analyst Adewale Abimbola noted that borrowing itself is not the main issue, but rather how the funds are utilised.
According to him, loans tied to productive projects with clear revenue potential can support growth, but poor implementation could worsen fiscal challenges.
Another expert, Dr Aliyu Ilias, raised concerns about increasing debt at a time when government revenues are reportedly improving.
He warned that high debt servicing costs are already affecting public spending, particularly in areas such as infrastructure and service delivery.
The data underscores the delicate balance Nigeria faces, leveraging external financing for development while ensuring debt remains sustainable over the long term.
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