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The World Bank has approved fresh loans totaling $8.40 billion (approximately N12.88 trillion) to Nigeria over the past two years, signaling strong international financial support for the country’s developmental agenda. The approvals, spanning June 2023 to August 2025, cover critical sectors including energy, education, healthcare, rural infrastructure, and governance.
This significant financial package was confirmed through data from the World Bank’s official records, highlighting a blend of financing from two key arms: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). Specifically, $1.95 billion (N2.99 trillion) was provided by the IBRD, while the IDA contributed a larger portion amounting to $6.50 billion (N9.98 trillion). These funds were converted at the official exchange rate of N1,535.93 per dollar as of August 11, 2025.
Among the latest approvals, a notable $300 million (N460.78 billion) loan was granted on August 7, 2025, for the Solutions for the Internally Displaced and Host Communities Project (SOLID Project). This initiative aims to boost resilience and improve access to essential services for approximately 7.4 million beneficiaries, including 1.3 million Internally Displaced Persons (IDPs) and host communities primarily in Northern Nigeria.
The World Bank’s Country Director for Nigeria, Mathew Verghis, emphasized the transformative potential of this project. “By aligning with Nigeria’s long-term development goals and adopting an integrated development strategy, the SOLID Project is designed to transition IDPs and host communities from humanitarian dependency to self-sufficiency and economic resilience,” he noted.
This development reflects the Bank’s commitment to fostering community-driven approaches and stronger collaboration among federal, state, and local governments alongside international partners.
Over the two years, Nigeria has secured financing for a broad array of projects that underpin the country’s socioeconomic progress. Among the most substantial loans were two $750 million (N1.15 trillion) facilities approved in June 2024:
Nigeria Reforms for Economic Stabilization to Enable Transformation Development Policy Financing – aimed at enhancing the country’s economic policy framework.
NG Accelerating Resource Mobilisation Reforms Programme-for-Results – focused on increasing non-oil revenues and protecting oil and gas sector earnings.
Additional funding highlights include:
$750 million for renewable energy expansion (December 2023),
$700 million to improve secondary education for adolescent girls (September 2023),
$500 million dedicated to women’s economic empowerment (June 2023),
$500 million allocated to foundational education improvements (March 2025),
Significant investments in primary healthcare and nutrition programs, totaling over $1 billion.
Infrastructure development also received a boost with loans supporting rural access, agricultural marketing, and community resilience programs.
Besides loans, Nigeria received approximately $122 million in grants targeted at healthcare and education projects, further supporting the country’s development priorities.
Looking ahead, Nigeria anticipates approval of three additional loans and a grant before year-end 2025. These include:
$250 million for the Health Security Program to strengthen regional health emergency response,
$500 million for expanding climate-resilient digital infrastructure,
$500 million to develop sustainable agricultural value chains.
A $10.5 million technical assistance grant is also expected to enhance the Central Bank of Nigeria’s capacity for data-driven regulation and payment systems.
While the influx of concessional financing offers opportunities for development, economists urge caution given Nigeria’s rising debt burden. Lagos-based economist Adewale Abimbola highlighted that concessional loans with favorable terms can be beneficial if deployed to viable projects that boost revenue and growth.
Conversely, Dr. Aliyu Ilias, CEO of CSA Advisory, expressed concerns about increasing debt, noting Nigeria’s total debt stock has surged from about N87 trillion in 2023 to nearly N149 trillion in 2025. He emphasized that the current borrowing spree coincides with government revenue surpluses, raising questions about fiscal management priorities.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, underscored the importance of debt sustainability. He cautioned that excessive foreign borrowing carries exchange rate risks and that sound economic planning is essential to avoid fiscal distress.
Data from Nigeria’s Debt Management Office shows the country’s total debt to the World Bank increased to $18.23 billion as of March 31, 2025, representing nearly 40% of Nigeria’s external debt stock. The World Bank remains the largest multilateral creditor, reinforcing its crucial role in Nigeria’s financing landscape.
The World Bank’s $12.88 trillion loan approvals over two years mark a pivotal moment in Nigeria’s development journey. While these funds offer a lifeline to key sectors and vulnerable populations, ensuring effective deployment, transparency, and sustainable debt management will be critical to translating financial support into lasting economic progress.