Nigeria’s Debt to World Bank Rises by $2.08bn in 2025

Nigeria’s exposure to the World Bank climbed sharply in 2025, increasing by $2.08 billion to $19.89 billion as of December 31, according to figures released by the Debt Management Office.

The latest data show an 11.7 per cent rise from the $17.81 billion recorded at the end of 2024, reflecting the Federal Government’s continued dependence on multilateral financing to manage fiscal constraints and fund development projects.

A closer look at the figures indicates that the bulk of the debt is tied to the International Development Association, which provides low-interest loans and grants to poorer countries. Nigeria’s IDA obligations rose by $1.94 billion within the year, from $16.56 billion to $18.51 billion.

Obligations to the International Bank for Reconstruction and Development also recorded a moderate increase, rising from $1.24 billion in 2024 to $1.38 billion in 2025.

Despite the increase in absolute terms, the World Bank’s share of Nigeria’s external debt dipped slightly to 38.36 per cent, down from 38.90 per cent in 2024. Analysts attribute this to faster growth in other borrowing sources, particularly commercial loans and syndicated project financing.

Overall, Nigeria’s external debt stock rose by $6.08 billion year-on-year to $51.86 billion, with World Bank loans accounting for over a third of the increase.

Further breakdown shows Eurobond debt climbed to $18.55 billion from $17.32 billion, while total multilateral debt rose to $23.85 billion from $22.32 billion. Bilateral debt also increased to $6.72 billion from $6.09 billion.

The figures reinforce Nigeria’s heavy tilt towards multilateral lenders, with the World Bank remaining its single largest creditor and accounting for the bulk of its concessional borrowing.

Economists say this pattern reflects limited access to cheaper market funding and the relative attractiveness of concessional loans, which offer lower interest rates and longer repayment periods.

However, concerns persist over the sustainability of the country’s rising debt burden. Experts warn that without stronger revenue mobilisation and prudent fiscal management, increasing borrowing could place additional strain on public finances.