The Federal Government of Nigeria has unveiled plans to secure a fresh $1.75 billion World Bank loan before the end of 2025, even as official data shows that government revenues surged by over 40 per cent in the first eight months of the year.

According to a statement released on Wednesday by Presidential spokesperson Bayo Onanuga, Nigeria’s total collections between January and August 2025 hit ₦20.59 trillion, a significant leap from ₦14.6 trillion in the same period of 2024. Non-oil revenue, largely driven by taxes, customs duties, and value-added tax (VAT), accounted for 75 per cent of the total inflows.

The Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) have both recorded surpluses in 2025, signaling improved efficiency in revenue mobilisation.

However, despite this fiscal progress, the Federal Government maintains that borrowing remains necessary to plug critical funding gaps in infrastructure, healthcare, agriculture, and digital transformation.


Information obtained from the World Bank’s official database shows that the new loan commitments, totalling $1.75bn, will fund four key projects:

Nigeria Sustainable Agricultural Value-Chains for Growth ($500m)

Aims to improve productivity, integrate value chains, and support rural development.

Currently in the Concept Review phase, with approval expected on December 11, 2025.



Building Resilient Digital Infrastructure for Growth ($500m)

Targets expansion of broadband access, digital services, and e-governance to strengthen Nigeria’s position in the global tech economy.

Approval scheduled for October 31, 2025.



Health Security Programme – Phase II ($250m)

Designed to strengthen Nigeria’s public health systems and emergency preparedness in line with lessons from COVID-19.

Expected approval date is September 30, 2025.



Fostering Inclusive Finance for MSMEs ($500m)

Will improve access to credit for small and medium enterprises (SMEs), often described as the backbone of Nigeria’s economy.

Approval anticipated by December 18, 2025.




Collectively, these loans are intended to boost growth, tackle unemployment, and modernise Nigeria’s economy.



While the government insists that the borrowing is strategic, economists and policy analysts warn of mounting fiscal risks.

According to the Debt Management Office (DMO), Nigeria’s total debt to the World Bank rose to $18.23bn as of March 2025, representing nearly 40 per cent of the country’s $45.98bn external debt stock.

The International Development Association (IDA), the concessional arm of the World Bank, accounts for over $16.9bn of Nigeria’s exposure, while the International Bank for Reconstruction and Development (IBRD) makes up $1.24bn.

Lagos-based economist Adewale Abimbola noted that while concessionary loans are preferable due to lower interest rates and longer repayment periods, Nigeria must ensure proper deployment.

“Borrowing is not the problem; the key issue is utilisation. If loans fund projects that generate future revenue, then they can pay for themselves. But if wasted, they become a burden,” he said.

Development economist Dr. Aliyu Ilias was more critical, arguing that the Federal Government’s borrowing contradicted its claims of revenue surpluses.

“With revenues rising by over 40 per cent, there should be less dependence on debt. Unfortunately, debt servicing now eats deep into the budget, crowding out funds for capital projects,” he warned.

According to him, Nigeria’s debt stock has ballooned from ₦87 trillion in 2023 to nearly ₦149 trillion in 2025, and could approach ₦180 trillion if the borrowing trend continues unchecked.


Finance Minister and Coordinating Minister of the Economy, Wale Edun, insists that the loans are consistent with President Bola Tinubu’s economic reform strategy, which seeks to stabilise inflation, strengthen the naira, and boost job creation.

He stressed that multilateral loans, unlike commercial borrowing, are cheaper and targeted at productive sectors.

Edun also pointed to projects like the National Single Window initiative and digital reforms that are expected to reduce trade bottlenecks and improve revenue collection.

Furthermore, Edun assured that debt sustainability remained a priority, with efforts underway to increase Nigeria’s tax-to-GDP ratio from its current 10 per cent to at least 18 per cent by 2026.



Experts argue that Nigeria’s long-term economic stability hinges not only on securing loans but on ensuring that they translate into tangible results for citizens.

The World Bank itself has warned that poor governance, corruption, and weak institutions remain obstacles to achieving the full benefits of international financing.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), advised caution:

“Debt is not inherently bad, but repayment capacity must always guide borrowing decisions. Nigeria cannot afford to enter a cycle of borrowing to service old loans.”

With over 223 million citizens, Nigeria faces the dual challenge of driving economic transformation while managing its debt profile responsibly.

Whether the $1.75bn World Bank loan becomes a catalyst for growth or another layer of fiscal burden will depend on implementation, transparency, and accountability in the coming years.